Of the 89% of Fifth Third Mortgage Co.'s portfolio eligible for Home Affordable Modification Program (HAMP) consideration, nearly 35% of trial plans started have been converted to permanent modifications, the company says.
‘We have significantly increased staff in this department and continuously work to convert customers who are eligible for the program,’ says Steve Alonso, executive vice president of consumer lending and mortgage at Fifth Third Bank.
The bank notes that it has created a borrower-facing Web site – www.53.com/bettertomorrow – to help explain the program and its document requirements.
More than a year prior to the Home Affordability and Stability Plan launch last year, Fifth Third Bank developed proactive customer outreach and assertive modification programs to assist more borrowers experiencing financial hardship, the company says. The program, ‘You Have Options,’ allowed Fifth Third to offer flexible-term and rate concessions to bank-owned mortgages, which make up approximately 8% of Fifth Third Mortgage's portfolio.
The bank has decided to continue to use its You Have Options program for its bank-owned mortgages instead of the government's HAMP program.
‘'You Have Options' primary goal is to consider all debts and reasonable monthly obligations to ensure the customer has a surplus of monthly net cashflow for unplanned circumstances,’ said Alonso.
Approximately 70% of bank-owned modifications continue to perform according to the updated terms, the bank says.
Fifth Third Bank's customer outreach programs include "Community Advisory Forum" networks in eight metropolitan markets. This group is made up of community leaders that advise the local Fifth Third Bank affiliate on matters related to lending, outreach and community engagement.Â
Fifth Third also has an early-intervention department, which focuses on those loans deemed to exhibit signs of possible default such as declining credit scores and depreciating market prices.
SOURCE: Fifth Third Bancorp