Wells Fargo & Co. has completed more modifications under the government’s program than any other servicer. But Citigroup Inc. has reached the biggest share of its borrowers who are eligible under the program. Over at Bank of America Corp., the company has staffed up to improve its modification performance.
As of January, 116,000 permanent modifications have been completed under the Home Affordable Modification Program, according to data reported by the Obama administration. Permanent modifications jumped from December, when they stood at just 66,465.
Wells Fargo Bank, NA, has completed 17,652 permanent modifications under the program — more than any other servicer. Wells has 357,483 borrowers who are at least 60 days past due and HAMP-eligible of which 38 percent have either started a trial plan or completed a permanent modification.
In addition, subsidiary Wachovia Mortgage, FSB, has completed 330 modifications but has just a 3 percent conversion rate.
The distinction of reaching the biggest share of eligible borrowers went to CitiMortgage Inc., which has converted 50 percent of its 246,038 HAMP-eligible borrowers to trial plans or permanent modifications.
GMAC Mortgage Inc. has also reached half of its HAMP-eligible borrowers, which numbered 65,751. Permanent modifications at the company have reached 11,494.
Trailing GMAC was Saxon Mortgage Services Inc.’s 48 percent conversion rate on its 71,429 borrowers who are eligible for the program; then Select Portfolio’s 40 percent on its 62,041 HAMP-eligible loans; and J.P. Morgan Chase Bank, N.A.’s, 38 percent on its 432,416 loans that qualify for the program. The JPMorgan Chase & Co. unit has completed 11,581 permanent modifications.
None of Franklin Credit Management Corp.’s 9,527 HAMP-eligible borrowers have started or completed a loan modification — the worst record of any servicer.
More borrowers are eligible for HAMP at Bank of America, NA — 1,066,025 — than any other U.S. servicer. But the bank has only converted 22 percent of the mortgages, while permanent modifications have been achieved by just 12,761 of its borrowers.
But the Charlotte, N.C.-based institution noted in a statement yesterday that completed HAMP modifications “quadrupled” from the prior month. BoA pointed out that its default management staffing has been pushed to more than 15,000 people. Since January 2008, the company said it has modified 700,000 under both the government’s program and its own proprietary program.
In a recent report, Moody’s Investors Service said “that only 400,000 to 1 million loans will be saved from foreclosure by HAMP, far short of the 3 to 4 million loans that the administration had hoped for when the program was announced.”
In an announcement earlier this month, Fifth Third Mortgage Co. touted its 35 percent rate of conversion from trial plans to permanent modifications, “more than four times the national average of 7.4 percent.”
