Home Affordable Modification Program (HAMP) servicers completed 22,260 loan modifications in February, up 24% from the prior month, according to a Treasury Department report.
The HAMP report released on Friday shows that 20% of the loan modifications involved a writedown of the principal amount of the loans.
Fannie Mae and Freddie Mac are responsible for 40% to 50% of all HAMP modifications, according to the Federal Housing Finance Agency (FHFA). However, the GSE regulator does not permit principal reductions on Fannie and Freddie guaranteed loans.
FHFA acting director Edward DeMarco is presently reconsidering his blanket prohibition on principal reductions.
Nearly half or 46% of non-GSE trial modifications started January involved principal reductions. Treasury did not update that percentage in February' report.
The HAMP principal reduction program was rolled out in October 2010.
Bank of America and Wells Fargo Bank have approved over 12,000 HAMP principal reduction modifications. JPMorgan Chase Bank has approved nearly 10,900 PR mods and Ocwen Loan Servicing has approved over 8,800. OneWest Bank is a distinct fifth in the rankings with 2,700 PR mods.