HAMP: Foreclosure Help Rate Nudges to 29% of Eligible

MakingHomeAffordable.govThe government’s primary foreclosure rescue program has permanently reduced the mortgage payments of 168,708 borrowers through February, the U.S. Treasury reported today.
But the percentage of those eligible homeowners who are either in the trial phase or approved for permanent status nudged just one point to 29 percent, compared to 28 percent in January and 25 percent in December.
Moreover, the program is failing to keep up with the rate of delinquencies and new foreclosure filings that persist every month.
More than 300,000 new foreclosure filings, including default notices, scheduled auctions and bank repossessions, have been filed each month over the last 12 months since the launch of the government’s $75 billion Home Affordable Modification Program, HAMP.
HAMP has had only limited success, according to a growing coalition of critics, including homeowner advocates, lawmakers and mortgage industry experts.
The program’s goal is to assist as many homeowners as possible in a pool of 3 million to 4 million eligible borrowers who are at least 60 days delinquent on their mortgages.
About 1.3 million homeowners have so far received offers for trial modifications, representing more than a third of the eligible group. However, the program has been troubled by processing delays which administrators have said are being addressed.
HAMP reports an 8.2 percent cancellation rate among borrowers who start modifications but fail to complete the three-month trial program.
In addition to the more than 170,000 permanent modifications approved, there are more than 91,800 additional borrowers who have been approved for permanent status, but the paperwork has not been completed. HAMP reports 835,194 “active trial modifications.”
The top five mortgage servicers ranked by the number of mortgage modifications underway are: Bank of America (261,216); JPMorgan Chase (171,317); Wells Fargo (139,065); CitiMortgage (129,383); and GMAC Mortgage (35,013).
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