The mortgage servicing market’s two largest players–Bank of America and Wells Fargo–did not fare very well in the loan modification scorecard released by the Treasury Department yesterday. BofA, the top servicer at the end of the first half with more than $2.1 trillion and business and a 19 percent market share, received one of the lowest scores in the Treasury’s first report on the government’s Home Affordable Modification Program.
Only 4 percent of BofA’s potentially eligible borrowers received trial loan modifications under HAMP. Wells, the second largest servicer at the mid-year mark with $1.8 trillion in business and a 16 percent market share, didn’t fare much better. Some 6 percent of Wells borrowers in default have received trial loan modifications under HAMP. In defense of BofA’s and Wells’ low scores, the Treasury’s new report doesn’t capture non-HAMP loan modifications nor does it reflect other workout options that distressed borrowers may receive.
