The Treasury released its newest data on the Home Affordable Modification Program (HAMP) results, revealing that New York, Northern New Jersey and Long Island are leading for most active trials, permanent modifications, total HAMP activity and percentage of all HAMP activity. Next in line on the list includes Los Angeles, Long Beach, and Santa Ana, California.
Criticism started early with the HAMP program because, since it was released last year, the percentages of people who benefitted from it, compared to the percentages of people who foreclosed on their homes was significant. Foreclosures are only recently declining, slowly, but the foreclosure filings in the U.S. are still up 30 percent from last year.
HAMP modifications by investor type , not surprisingly, shows that some of America's largest banks are at the top of the list for most loan modifications. Bank of America, JP Morgan Chase and Wells Fargo are the top 3 in that list, consecutively. The largest server, Bank of America modified a total of 234,156 GSE, private and portfolio modifications, JP Morgan Chase totaled 162,483 and Wells Fargo reached 137,128 modifications. The total number of of modifications among the top 20 servers was 946,735.
The Press Room of the U.S. Department of Treasury released this statement: "HAMP is the most ambitious government program of its kind – reaching far more homeowners than any previous program has ever attempted. Less than a year after its launch, the program is providing significant relief to struggling families. More than 940,000 homeowners currently have reduced monthly mortgage payments with a median savings of more than $500. That is an aggregate savings of more than $2.2 billion."
The problem so far, is that out of the 946,735, only 116,000 of them have actually received "permanent modification." The government says the program is doing what it's supposed to, but, especially in terms of Bank of America, the amount of bailout money doesn't at all reflect the amount of money they've put out to help the loans they're either working on, or the amount of loans (about 12,000) they've actually modified.
"With nearly 1.3 million trial modifications offered already, the program is on pace to meet its overall program goal of providing 3-4 million homeowners the opportunity to stay in their homes." When that will actually happen is yet to be seen.
Source: U.S. Department of Treasury Press Room and Making Home Affordable Program Servicer Performance Report through January 2010
Written by Amy Munday
Huliq.com
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