More than 116,000 borrowers now have permanent modifications under the Home Affordable Modification Program (HAMP), nearly doubling the number from December, the U.S. Treasury Department reports. An additional 76,000 permanent modifications have been offered and are waiting only for the borrower's signature.
Through January, about 1 million homeowners have started trial modifications, and nearly 1.3 million offers for trial modifications have been extended to homeowners.
The Treasury also reports that 1,005 permanent modifications and 60,476 trial modifications have been canceled.
‘With nearly 1 million homeowners paying less each month and the number of permanent modifications steadily rising, HAMP is doing the job it was designed to do,’ says Phyllis Caldwell, chief of the Treasury's Homeownership Preservation Office.
The majority of permanent modifications – 57% – have been received by people coping with unemployment or underemployment, the Treasury says. The median savings to borrowers in permanent modifications is more than $500 each month.
Both CitiMortgage and GMAC Mortgage have started active modifications (i.e., trials and permanents) on half of their eligible 60+ day delinquent loans. Forty-eight percent of Saxon Mortgage's estimated eligible 60+ day delinquencies are in active modifications.
Wells Fargo recorded the largest total of permanent modifications, with 17,652.
In a media statement, Wells Fargo says that from October 2009 through January 2010, it has initiated or completed three modifications for every one foreclosure sale on owner-occupied properties. In the past 12 months, fewer than 2% of the loans secured by owner-occupied homes and serviced by Wells Fargo proceeded to a foreclosure sale.
The company additionally outlined its expectations for the approximately 92,000 borrowers who had made three HAMP trial payments as of the end of January. According to its breakout, Wells Fargo anticipates that half of those borrowers will receive permanent modifications, 30% will be deemed ineligible following documentation review, 10% will be lacking some required documents and another 10% will fail to provide any of the required documents.