Permanent modifications under the Home Affordable Modification Program (HAMP) rose by about 45% in February, bringing the total to 170,207 modifications, the Treasury Department reports. More than 91,000 permanent modifications have been approved by servicers and are awaiting borrower signatures.
The Obama administration introduced HAMP about one year ago, projecting it would reach 3 million to 4 million borrowers by 2012. In its February report, released Friday, the Treasury says the program is 34% to 45% of the way to its goal of offering help to that many borrowers. Trial plans have been offered to 1.35 million borrowers.
Between canceled trial modifications and canceled permanent modifications, some 90,000-plus borrowers have fallen out of HAMP.
At the end of February, Wells Fargo had the highest number of permanent modifications, with 24,975. Including active trial modifications and permanent modifications, CitiMortgage and GMAC Mortgage have each modified about half of their eligible 60+ day delinquent loans.
"HAMP is and will continue to be an important part of our efforts to keep people in their homes, but we are using every tool available to us to help prevent foreclosures whenever possible," says Mike Heid, co-president of Wells Fargo Home Mortgage.
More than 19,000 Wells Fargo borrowers have been canceled out of the HAMP program because they don't meet the prescribed guidelines, the company says, with more than 11,000 of those cancellations occurring during the month of February.
Wells Fargo anticipates, based on its experience so far, that approximately 60% of those canceled will retain their homes through a non-HAMP modification or another workout option, 10% will pay off their loan in good standing or go to a short sale, and the remaining 30% will enter foreclosure or bankruptcy.