Latest HAMP Report Card Shows Good and Bad Among Servicers

The Treasury Department’s latest scorecard on the government’s Home Affordable Modification Program reveals that most major mortgage servicers significantly increased the number of trial loan modifications they are doing between August and September. But the new data also show that some of the biggest servicers–most notably Bank of America–are way behind when it comes to HAMP modification activity. Treasury reported that only 11 percent of the Bank of America loans theoretically eligible for HAMP have seen trial loan modifications. Meanwhile, CitiMortgage had started trial mods on one-third of its eligible mortgages–the highest level recorded by any top five mortgage servicer.

A senior executive from CitiMortgage will be discussing the company’s approach to HAMP at an Inside Mortgage Finance audio conference on October 21 at 2 pm EDT. Click here for more info.

Fannie Executives to Discuss HAMP Progress, Challenges

Two senior executives from Fannie Mae have joined the panel that will discuss the government’s Home Affordable Modification Program at an Inside Mortgage Finance audio conference on October 21 at 2 pm EDT. Fannie regulates its customers for HAMP compliance plus it serves as an administrator –including managing incentive payments– for the overall program. Joining Fannie Mae at the upcoming audio conference are executives from CitiMortgage, the Boston Fed as well as a legal expert on HAMP.

Click here for more info.

Top Servicers BofA and Wells Receive Low Grade in HAMP Scorecard

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.

Obama Administration Offers More Aid for Loan Modifications

The Obama Administration sweetened its incentives for mortgage market players that successfully modify troubled loans by announcing this week it would add second mortgages into the bailout mix. Specifically,
Treasury said it will pay servicers $500 to modify a second loan attached to a distressed first mortgage that was receiving a modification under the recently announced Home Affordable Modification program. Also, banks and other investors holding second mortgages will be offered lump sum payments to extinguish second liens altogether.

Separately, Treasury announced it would be promoting use of the FHA’s HOPE for Homeowners program by requiring mortgage servicers using HAMP to consider H4H before modifying a troubled mortgage. To further boost usage of H4H, the government said it would now pay a hefty $2,500 incentive to servicers who successfully refinance a distressed loan using the program.

Treasury Working on HAM Program Details

The Treasury Department continues to develop guidelines for the Home Affordable Modification program. In addition to pending guidance from the Treasury on payments to servicers for mods that default under the
HAM program, the government-sponsored enterprises are working on
guidelines to administer the program and oversee servicers’
compliance. The HAM program is the subject of a new Inside Mortgage
Finance audio conference scheduled for tomorrow at 3 pm EDT. Click
here for more information.

Administration’s New Loan Mod Plan to be Analyzed

The Obama administration’s new Home Affordable Modification program and its impact on ongoing loss mitigation efforts in the mortgage industry is the subject of a new Inside Mortgage Finance audio conference scheduled for April 2 at 3 pm EDT.

This important event will feature mortgage industry legal experts Larry Platt from K&L Gates and Don Lampe from Womble Carlyle, who will explain all the nuances of the HAM program and where it fits in with other federal efforts to slow down foreclosures. The audio conference also will feature Steve Bailey, head of Bank of America’s massive mortgage servicing operation, who will provide an update on BofA’s loss mitigation efforts as well as his take on the government’s latest push to encourage more loan modifications.

Click here for more info.