Wednesday, May 19, 2010


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On May 17, 2010, the U. S. Department of the Treasury and the Department of Housing and Urban Development (HUD) released April 2010 data for the Obama Administration's Home Affordable Modification Program (HAMP) showing permanent modifications for almost 300,000 homeowners - an increase of 68,000 or almost 13 percent over March.

New in this month's report is information about servicer-specific conversion rates to permanent modifications and servicer performance in giving homeowners timely decisions. The data show that there is wide variation among servicers in these areas, further demonstrating the need for transparency regarding servicer performance.


Almost 300,000 permanent modifications -
An Increase of 68,000

  • Borrowers in permanent modifications are experiencing a median payment reduction of 36%, more than $500 per month.
  • Over 68,000 trial modifications converted to permanent modifications in April, an increase of almost 13% from March.

Servicers Begin to Require Upfront Documentation

  • In order to comply with Treasury guidelines that take effect on June 1, in March 2010 servicers began collecting upfront documentation from borrowers prior to initiating new trial modifications.
  • Treasury is monitoring servicer performance closely to ensure that borrower demand is met and that servicers are reviewing modification requests in a timely manner.

Resolutions to Borrowers
Who Entered Trials Before January 1, 2010

  • Common causes of cancellations include missed trial payments and incomplete or unverifiable documentation.

New This Month
Conversion Rates By Servicer

  • Servicers show wide variation in conversion rates as measured against trials eligible to convert.
  • Servicers who started trials with verified documents generally posted higher conversion rates than servicers who allowed borrowers to enter trials with stated income. With recent Treasury guidance, all servicers are now verifying borrower documents before trial start.
  • Using stated income upon trial starts, the four largest participating servicers have conversion rates below 30%.

New This Month
Aged Trial Modifications by Servicer

  • Servicers show wide variation in completing timely decisions on trial modifications.

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Making Home Affordable Program
Servicer Report
April 2010 (05/17/10)

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