Chase Releases Its HAMP Numbers

Posted by Orb Staff on July 01, 2009 No Comments
Categories : Mortgage Servicing

has approved about 138,000 trial modifications since April 6, when it began processing trial modifications through the federal government's Home Affordable Modification Program (HAMP). The banks says another 155,000 applications are in the review process. Of the approved trial modifications, 87,000 are actual HAMP mods. Chase also has its own modification program that it uses for loans that do not qualify for HAMP, and those loans total 50,900. Similar to the Treasury's program, Chase's program requires borrowers to enter a three-month trial period before the modifications are made official. Chase says 44,100 borrowers have made their first modified payments under HAMP, and 9,500 borrowers have made their first modified payment under the bank's program. ‘We have made terrific progress since April 6 in helping families with trial modifications by ramping up our capacity through hiring people, adding office space and investing in technology,’ says Charlie Scharf, head of Retail Financial Services at JPMorgan Chase. He notes that HAMP is still in its early stages, "so it is difficult to gauge its ultimate success." Chase, which services about 10.3 million loans (including about 8 million for investors) generally stops foreclosure while reviewing a mortgage for modification. If a loan does not qualify for a HAMP or a Chase modification, it is referred to the bank's loss mitigation department, which will consider more traditional plans, as well as short sales and deeds-in-lieu of foreclosure. ‘It has taken some time to put the resources in place to handle the extraordinary customer demand during this crisis, to incorporate each update to the Making Home Affordable Program, and then to properly evaluate each borrower's situation,’ Scharf says. ‘Over the last three months, we have made great improvements, and we expect the numbers of approved modifications to continue to grow for some time.’ Since the beginning of 2009, Chase has added 950 loan counselors, bringing the total to 3,500, and it plans to add hundreds more in the coming weeks. Two thousand employees have been added to the company's mortgage operations, and the bank has opened 27 Homeownership Centers, where borrowers can meet face to face with trained counselors. SOURCE

Register here to receive our Latest Headlines email newsletter




Leave a Comment