Treasury Issues HAMP Performance Report

The Treasury recently issued the Home Affordable Modification Program (HAMP) Performance Report (through April 2011).  The statistics are quite interesting.

Here are some of the points I thought worth noting:

  • California (24%) and Florida (12%) represent a combined 36% of HAMP activity (active trials and permanent modifications). (p. 4 of the report)
  • Borrowers whose HAMP trial modification was cancelled were more likely to end up in foreclosure than to complete a short sale.  6.6% of cancellations resulted in foreclosure, another 15.6% are in the foreclosure process, and only 5.2% are in the short sale (or deed-in-lieu) process. (p. 10).
  • The report’s “Service Assessment Results” identified 4 servicers needing “Substantial Improvement:”  Bank of America, Wells Fargo, Chase, and Ocwen Loan Servicing (p. 16)
  • The average length of a trial modification was 3.5 months (for trials started since June 2010 that became permanent modifications), down from 5.2 months for trials started before June 2010 (p. 1)

Overall, the HAMP program seems to be improving, at least in terms of the time it takes to either cancel a loan modification trial or make it permanent.  Of course, the larger problem remains; borrowers with permanent loan modifications often end up back in foreclosure due to their circumstances (lack of employment, decreased earnings, etc.).

 

 

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