Magazine article Mortgage Banking

HAMP Mod Cancellation Rate Hits 8.2 Percent

Magazine article Mortgage Banking

HAMP Mod Cancellation Rate Hits 8.2 Percent

Article excerpt

The latest report card released from the Treasury Department on the progress being made in the Home Affordable Modification Program (HAMP) noted that 8.2 percent of all HAMP modifications started have been canceled. The report covers all HAMP activity through February 2010.

Under the program, there were 168,708 active permanent modifications as of the end of February. The number of trial HAMP modifications that were cancelled as of the end of February totaled 88,663. The number of permanent modifications canceled totaled 1,499 (that number includes 26 loans that were paid off).

The latest HAMP report noted that 32 percent of trial modifications started at least three months ago (from February) have been approved for conversion to permanent status by the servicer.

In the new report, 57.4 percent of HAMP borrowers said "loss of income" was the predominant hardship leading them to seek their permanent modifications. An "excessive obligation" was the next most frequent reason (10.7 percent) provided as the predominant hardship.

Of the permanent HAMP modifications completed through February, the median decrease in monthly payment achieved was $518.88. That was down slightly from the $521.85 median decrease in payment reported in the January HAMP report.

In February, GMAC Mortgage Inc. passed CitiMortgage and took over first place in the rankings of servicers with the highest share of active HAMP modifications achieved as a percentage of estimated eligible 60-plus-day delinquencies. …

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