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News and Views
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Overview
On January 15, 2010, the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) released an update on the Obama Administration's nationwide campaign to help borrowers in the trial phase of their modified mortgages convert to permanent modifications under the Home Affordable Modification Program (HAMP).
The new December data demonstrates that there has been a significant acceleration in the rate at which borrowers are being approved for permanent modifications.
As of December, more than 110,000 permanent modifications have been approved, including 66,000 that borrowers have accepted and 46,000 awaiting only the borrower's signature. Under HAMP, more than 850,000 homeowners have had a median payment reduction exceeding $500.
HAMP was designed to offer through 2012 up to 3-4 million homeowners reduced monthly mortgage payments that are affordable and sustainable over the long-term.
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Highlights
Making Home Affordable Program
Servicer Performance Report Through December 2009
Fourth Quarter Findings
- Approximately 89% of eligible mortgage debt outstanding is covered by HAMP participating servicers.
- HAMP servicers rose from 63 to 102. (2,300 lenders servicing loans owned or guaranteed by Fannie Mae or Freddie Mac are automatically eligible to participate in HAMP.)
- The volume of active trial and permanent modifications rose by more than 75% from the 3rd quarter.
- December Conversion Campaign resulted in an increase in the number of permanent modifications of more than 100%.
- More than 46,000 offers for permanent modifications have been sent to borrowers.
Charts, Graphs, Maps, Analyses
- Mortgage Rates Housing Inventory
- Home Prices
- New and Existing Home Sales
- Home Affordable Modification Program (HAMP) Snapshoth
- HAMP Trials Started (Cumulative, by Month)
- HAMP Program Highlights
- HAMP Trial Plans Offered to Borrowers (Cumulative, by Month)
- Permanent Modifications by Waterfall Step
- Predominant Hardship Reasons for Permanent Modifications
- Select Median Characteristics of Permanent Modifications
- HAMP Modification Activity by Servicer
- Active Modifications as a Share of Estimated Eligible 60+ Day Delinquencies
- HAMP Activity by State
- Mortgage Delinquency Rates by State
- 15 Metropolitan Areas With Highest HAMP Activity
- HAMP Modifications by Investor Type (20 Largest Servicers)
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Solution to Excessive Defaults and Claims
REDUCE HIGH COMPARE RATIOS
- FHA and Conventional -
Our Compare Ratio Task Force� is designed to reduce high
Compare Ratios caused by excessive defaults and claims.
Task Force Description
- Staffed with subject matter experts and skilled auditors
- Specially designed checklists and automated file screening systems
- State-of-the-art quality control, compliance, forensics, and modern research facility
- Scalable up to virtually any size default and claims experience
- Upload/download large file formats for prompt reviews
- Located in a secured and safe audit location
Our Remedy
- Comprehensive review of existing defaults and claims for loss mitigation and loan modification eligibility
- HUD-FHA and regulatory compliance guidance for the mortgagee
- FHA and conventional Early Payment Defaults resolution strategies and loss mitigation methodologies
- Notification to mortgagee of borrower's loss mitigation eligibility
- Notification of loss mitigation eligibility to the borrower
- Referrals to expert, nationwide legal counsel to handle loss mitigation and loan modification strategies
- Monitoring of loss mitigation applications in process
- Follow-up with servicers to assure proper and timely resolution and notification to HUD-FHA
- On-going review and loss mitigation of new defaults and claims
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Visit our Library for Issuance 
Making Home Affordable Program
Servicer Performance Report Through December 2009 - January 15, 2010
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Lenders Compliance Group is a full-service, mortgage risk management firm, providing professional guidance to financial institutions in all areas of mortgage compliance.
Specializations
Mortgage Compliance
Compliance Reviews
Forensic Loan Audits
FHA Examinations
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Legal Reviews & Remedies
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Quality Control
HMDA & CRA Reviews
IT & IS Compliance
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