Making Home Affordable - The banks get another report card

Reblogger Gary W. Oakes
Real Estate Agent with Crye-Leike Realtors

This is some great information for those close to this situation.

Original content by David Northup

Making Home AffordableAccording to the most recent Servicer Performance Report, there has been a dramatic increase in the number of loans modified under the Home Affordable Loan Modification Program or (HAMP). The HAMP program is part of the Making Home Affordable Program launched by the Obama Administration in February 2009.

So how are the banks doing? What level of participation are different banks demonstrating?

Let's take a look.

First an overview of the entire program. Here are some interesting statistics:

  • The number of permanent loan modifications is up by 45% since last month
  • More than 170,000 permanent modifications have been done (guaranteed lower payments for 5 years).
  • 91,800 additional modifications have been approved and are pending borrower's approval/acceptance
  • Over 1,300,000 borrowers have received Trial Modification Offers
  • Median Savings for borrowers that received a  permanent loan modification = $518/month
  • Making Home Affordable has a goal of offering 3-4 million homeowners loan modifications by Dec. 2012.
  • 1,300,000 offers to date

Of the permanent modifications that have been done so far:

  • 100% had an interest rate reduction
  • 40.8% had the term extended
  • 27.8% had some sort of principal reduction/forbearance

The Hardship reasons for permanent modification were:

  • 57.4% Loss of income
  • 10.8% Excessive Obligations
  • 2.7% Illness

So how do individual banks compare?

One of the biggest questions homeowners have is "What are my chances of getting a loan modification with ------ Bank?". Here's how the different banks compare.

HAMP Lender Participation

It's pretty clear that while GMAC is not the biggest servicer, they are doing more loan modifications per loan they service than any other bank. It's also pretty clear that while Wachovia has become a Listing Agent's favorite bank to work with on a Short Sale (see my post on that topic here - Wachovia / Wells Fargo reaching out to Temecula Homeowners), they are far more interested in doing Short Sales (and foreclosures) than HAMP loan modifications.

Here are the total numbers by servicer.

HAMP Activity by Servicer

 

Here is a look at the types of Investors behind the loans that have been modified.

HAMP Loan Types

 

And one last chart to show the MSAs with the highest HAMP activity.

HAMP Activity by MSA

The numbers show that my area of Riverside/San Bernardino/Ontario is 5th in the nation with regard to HAMP activity.

If you want to see the entire report you can access it from my site at http://aimreg.com/-hamp.asp on the left sidebar. As of this post, the Feb 2010 report is the most recent.

-Temecula CA Real Estate

***********************************
David NorthupDavid Northup - Broker, Realtor®, Owner
Aim Real Estate Group Inc.,  
Temecula Real Estate
"Providing Direction For Buyers and Sellers"
Delivering "Raving Fan" Customer Service in the process
**Buyers - Contact David for a list of available homes!
**Sellers - Let me provide you with a comparable market analysis that will give you an idea of your home's current value. Even if your home's value is less than the amount you owe, we can still typically make arrangements to sell your home at little or no cost to you.

Call me at (951) 326-0196 or choose one of these other ways to connect with me . . .

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*** All information/opinion offered is deemed reliable but not guaranteed. CA DRE License # 01802944 ***

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Rainer
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David Northup
David Northup - Aim RE Group Inc, Temecula Realtors® (AIM) - Murrieta, CA

Thank you Gary for re-posting! All the data is buried in a "Making Home Affordable Program Servicer Performance Report" that can be found at http://www.financialstability.gov/ but not many people are aware of it. This is a great way to get the word out about which banks are participating and which ones are not.

Apr 01, 2010 05:14 AM #1
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Rainer
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Gary W. Oakes

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