Another sign that modifications aren’t working…..
Let’s take a look at these statistics:
- 29 out of every 100 modified loans didn’t make the required payments on time.
- Only 14% of the modifications that Chase has done have resulted in a “permanent status.”
- Only 2% of the modifications done through the government’s highly touted Home Affordable Modification Program have reached permanent status.
Putting a band-aid on someone who needs a heart transplant isn’t going to solve the problems…..
Tom Vanderwell
Executives and analysts testified before the House Committee on Financial Services Tuesday outlining the struggles servicers are having converting trial modifications into permanent status under the Home Affordable Modification Program (HAMP).Through HAMP, the US Treasury Department provides allocated capped incentives to servicers for the modification of loans on the verge of foreclosure.
For every 100 HAMP trial plans initiated by Chase Home Finance from April to through September, 29 borrowers did not make the required payments and failed to reach a permanent status, according to testimony from Molly Sheehan, senior vice president at Chase Home Finance.
Chase has offered more than 560,000 modifications under HAMP, its own program and programs made available by the government-sponsored enterprises (GSEs), the Federal Housing Administration (FHA) and VA programs. Of these, a little more than 83,000 modifications have become permanent. Under HAMP alone, Chase has converted 4,302 of the 199,033 HAMP trials offered into permanent modifications.
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