The Treasury Department said the 38 servicers participating in the Home Affordable Modification Program (HAMP) are conducting more than 235,000 trial modifications and released its first monthly report on each servicer's performance.
"Today's report discloses performance on a servicer-by servicer basis in order to increase transparency for participating institutions. The data show that servicer performance is uneven," Treasury said. The report rated servicer performance in terms of trial modifications started in relation to the size of their portfolio of eligible loans that are 60-days or more pass due.
Saxon Mortgage Services ranks highest with 25% of its delinquent loans in 90-day trials, while Bank of America is conducting modifications on only 4% of its delinquent loans. Bank of America has 27,600 loans in trials, compared to 21,100 trial modifications at Saxon. JPMorgan Chase Bank has a 20% performance ratio with 79,300 loans in trials. Despite the disparities, Treasury said HAMP is "on track" to meet the Obama administration's three-year goal of modifying 3 to 4 million loans.
Meanwhile, HOPE NOW says servicers participating in the Obama administration's HAMP continue to make significant strides in offering at-risk borrowers a chance to lower their monthly mortgage payments to an affordable level.
Data released from the Obama administration shows that servicers have made modification offers to over 400,000 borrowers and 235,000 or 57.9% of the borrowers have entered into a HAMP trial modification.
In addition, servicers have requests for financial information from 1,387,218 at-risk borrowers, according to the Treasury's first monthly report on the servicers' performance. HOPE NOW executive director Faith Schwartz said its members are committed to meeting the administration's goal of 500,000 trial modifications started by Nov. 1.