The Treasury Department late Friday issued its first ever scorecard on HAMP second lien modifications, noting that from April of last year to February, servicers restructured 17,000 junior liens.
Once a borrower is approved for a permanent HAMP modification on a first mortgage they automatically are eligible for a second lien modification — but only if one of the 17 participating 2MP servicers owns the second. Some of the largest second lien holders — Bank of America and Wells Fargo & Co. — are 2MP participants.
"Numbers released in today's report reflect those homeowners that have already received their second lien modification, and the servicer has reported that information into the data system. As additional modifications are completed, the number of homeowners in 2MP will continue to grow," Treasury said.
The second lien modification (2MP) figures were disclosed in Treasury's Home Affordable Modification Program (HAMP) performance report.
Treasury also reported that HAMP servicers completed nearly 26,150 permanent first mortgage modifications in February, down from 28,000 permanent modifications in January.
HAMP servicers completed nearly 4,500 short sales and deed-in-lieu of foreclosure transactions in February.