Over 759,050 struggling borrowers have received temporary mortgage payment relief under the Obama Administration's loan modification effort, but only 4.1% have succeeded in landing permanent modifications, according to a monthly progress report on the Home Affordable Modification Program (HAMP).
The Treasury Department report showed that 31,382 borrowers who made it through the three-month payment trials have received permanent modifications as of Nov. 30. It appears that HAMP servicers completed over 20,000 permanent mods in November.
Treasury and Department of Housing and Urban Development (HUD) officials have been disappointed with the servicers' efforts to convert trial mods into permanent mods and they recently initiated a month-long effort to accelerate the conversion rate.
"Our challenge now is to keep the pressure on," HUD senior advisory William Apgar said. The administration launched HAMP in April and so far the average homeowner placed in the three-month trials has benefited from a $550 reduction in their monthly payment.
The first conversions to permanent mods occurred in July and 10,087 had been completed by the end of October, according to a congressional panel that oversees the Troubled Asset Recovery Program.