Wells Fargo & Co. has signed on to the Second-Lien Modification Program (2MP) component of the Obama administration's Home Affordable Modification Program (HAMP), becoming only the second servicer to do so. Bank of America signed a 2MP agreement in January.
The program will be offered to qualified Wells Fargo and Wachovia second-lien mortgage customers who have completed their HAMP modifications on their first mortgage.
‘The Second-Lien Modification Program offers struggling homeowners with yet another valuable option for reducing payments so they can remain in their homes," says Kevin Moss, executive vice president of Wells Fargo's Home Equity Group. "This program is an important component of joint industry and government efforts to bring further stability to the housing market."
Wells Fargo has already implemented a variety of its own programs to assist its home equity customers, the company points out. Since last year, the company's Home Equity Group has participated in Wells Fargo-sponsored home preservation events in Atlanta; Baltimore.; Chicago; Phoenix; and St. Paul, Minn., to provide customers the opportunity to talk face-to-face about their payment challenges. Three more events will be held in the first half of this year in Los Angeles; Miami; and Oakland, Calif.
Through February 2010, Wells Fargo provided assistance to more than 180,000 second-lien mortgage customers through various programs, including loan modifications and subordinations, and more than 500,000 first-mortgage customers with first-lien modifications, the bank says. This included 139,065 active trial and completed first-lien HAMP modifications.
Given the HAMP focus on affordability and documentation, Wells Fargo expects loans modified under the new second-lien program to have a similar quality and performance to those made under its own internal programs.
"This new program will help expedite our efforts and likely increase the number of borrowers we can assist through loan modifications, which will benefit our customers, our communities and our shareholders," Moss says.
SOURCE: Wells Fargo