The number of permanent loan modifications under the federal Home Affordable Modification Program (HAMP) more than doubled month over month to 66,465 through December, the Treasury Department reports.
The Obama administration, whose December ‘conversion campaign’ was meant to facilitate the transfer of modifications from temporary status to permanent, says an additional 46,056 borrowers had permanent modifications pending as of the end of 2009. This category, new to the Treasury's monthly HAMP report, includes modifications that are pending final signature of the borrower plus completed modifications not yet reported into the HAMP system of record.
As part of its conversion drive, the administration implemented a temporary review period to ensure that all borrowers are being fairly evaluated for the program. The temporary review period extends until Jan. 31. "Account liaisons" from Fannie Mae and the Treasury were also enlisted and placed on-site in the program's largest shops to make sure servicers increased efforts to deliver decisions to borrowers in trial modifications.
‘Treasury is committed to working with servicers and borrowers to sustain this improved pace,’ says Phyllis Caldwell, chief of the Treasury's Homeownership Preservation Office.
The following list represents the permanent modifications reported by servicers targeted in the Treasury's conversion campaign. The number of permanent modifications pending at each shop appears in parentheses:
- Aurora Loan Services LLC – 4,682 (2,737)
- Bank of America – 3,183 (9,178)
- CitiMortgage Inc. – 4,999 (6,968)
- GMAC Mortgage Inc. – 9,872 (2,733)
- JPMorgan Chase Bank – 7,139 (5,518)
- Ocwen Financial Corp. Inc. – 5,332 (2,256)
- Saxon Mortgage Services Inc. – 2,497 (5,853)
- Wachovia Mortgage FSB – 344 (725)
- Wells Fargo Bank – 8,424 (10,088)
Data new to the report include predominant hardship reasons for and median debt-to-income (DTI) ratio characteristics of permanent modifications.
Curtailment of income was far and away the hardship reason most commonly given, at 51.8%. "Excessive obligation" followed, at 11.2% of permanent modifications; unemployment made up 5.6%; and illness accounted for 2.7%.
The median decrease in borrowers' mortgage payments after modification was $516.14. Through December, 1.03 million trial-plan offers had been extended.
SOURCE: Treasury Department