Magazine article Mortgage Banking

New HAMP Report Card Shows New Trial Mods Decline in March

Magazine article Mortgage Banking

New HAMP Report Card Shows New Trial Mods Decline in March

Article excerpt

Tighter documentation rules on the front end prompted the number of new trial modifications started in March to fall to 57,000--down from 72,000 in February, according to the latest Servicer Performance Report released for the Home Affordable Modification Program (HAMP). The development was a direct result of deliberate changes aimed at allowing only qualified borrowers to enter the trial-mod phase so that servicers would spend less time on cases that were ineligible for HAMP.

The latest report card for HAMP activity shows that 155,173 trial modifications have been canceled because borrowers did not meet the terms for obtaining a permanent modification. Many of those were cases allowed in under earlier HAMP rules that did not require full documentation at the front end of the process.

At the same time, 230,801 trial HAMP modifications had been converted to permanent status as of the end of March. The total number of active HAMP modifications (both trial and permanent) reached 1,008,873, based on the latest data.

Loss of income remained far and away the dominant hardship cited by borrowers seeking a HAMP modification. Fully 59.1 percent of HAMP borrowers said that was the reason, while 10. …

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