Six Servicers Sign On For MHA Plan

Posted by Orb Staff on April 16, 2009 No Comments
Categories : Mortgage Servicing

ama administration has named the first set of servicers participating in its Making Home Affordable program. Chase Home Finance, Wells Fargo, CitiMortgage, GMAC Mortgage, Saxon Mortgage Services and Select Portfolio Servicing are eligible to receive up to a total of $9.9 billion in incentives for modifying loans under the government's plan. As much as $3.5 billion could be received by Chase, up to $2.9 billion by Wells Fargo, up to $2 billion by Citi, up to $633 million by GMAC, up to $407 million by Saxon and up to $376 million by Select Portfolio. ‘We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership,’ says Wells Fargo spokesperson Debora Blume tells the [u][link=http://www.washingtonpost.com/wp-dyn/content/article/2009/04/15/AR2009041502643.html?nav=rss_business ]Washington Post[/link][/u]. GMAC Mortgage says that, to date, it has distributed more than 100,000 financial packages to homeowners who are potentially eligible for modifications under the administration's program. ‘In the course of our 25 years of mortgage servicing, we have built strong relationships with Fannie Mae and Freddie Mac, and have partnered with both agencies in the past to pilot mortgage programs,’ says Anthony Renzi, president of GMAC Mortgage and chief operating officer of Residential Capital LLC, the company's parent. ‘This agreement represents our full support of the Obama administration's program objectives and our confidence in these two agencies to implement and administer the program.’ GMAC Mortgage also says it has begun adding staff to its nationwide lending and servicing centers, and the company will launch a customer outreach program to follow up with homeowners who have not returned the financial packages within 90 days of sending. ‘It is critical that the customer quickly return the completed financial package and affidavit of hardship to us,’ Renzi adds. ‘The sooner we receive that information, the sooner we can evaluate them for a modification under the program's guidelines.’ The six companies have been added to the Making Home Affordable Web site, under a section labeled "Contact Your Mortgage Servicer." Ocwen, which has [u][link=http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.3339]announced its implementation[/link][/u] of program modifications, was not listed among the companies receiving incentives, nor was Bank of America, which [u][link=http://www.mortgageorb.com/e107_plugins/content/content_lt.php?content.3335]recently said[/link][/u] it was in the process of rolling out Making Home Affordable modification offers to borrowers. SOURCES: Treasury Department, Washington Post, GMAC Mo

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