The Home Affordable Modification Program (HAMP) continued to slow in August, as servicers converted 33,342 modifications into permanent status during the month – a 9% decrease from the 36,695 permanent mods entered into the month before, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Treasury Department. In total, 448,937 borrowers have received a permanent modification through August.
More than 6,200 permanent modifications and 46,000 trial plans were canceled last month, the Treasury says. Servicers report that 44.5% of borrowers whose loans were canceled out of the program have received alternative modifications, 6.4% are current on their loans and 5.2% have gone through either the deed-in-lieu or short sale process. Fewer than 15% of borrowers with canceled loan modifications have started or completed a foreclosure.
The Treasury also reports that the inventory of aged trial modifications – those that have been in the trial stage for six months or longer – fell from 118,000 at the end of July to about 94,000 at the end of August. Bank of America, Chase and Citi accounted for 62% of the aged-trial backlog, the report says.
According to the quarterly results of the administration's Second Look compliance reviews, less than 5% of loans sampled from large shops were evaluated incorrectly.
SOURCE: U.S. Treasury Department