Yesterday, the Obama Administration released its first monthly Servicer Performance Report detailing the progress of the Making Home Affordable loan modification program (MHA Program). With a goal of providing transparency, the report provides information about the number of homeowners that have been assisted under the MHA Program and information regarding servicer performance. This report comes amid disappointment that the MHA Program has not done enough to assist homeowners in need and a week after members of the Obama Administration met with top executives and servicers participating in the MHA Program in an effort to improve the effectiveness an overall efficiency of the MHA Program.
In the press release accompanying the Report, Treasury boasts that it is on track to provide assistance to 3 to 4 million homeowners over the next three years, but acknowledges that, to date, trial modifications have only been initiated on just over 230,000 loans. Currently servicers covering 85 percent of the loans in the nation are modifying loans under the MHA Program. Specifically, the report details performance on a servicer-by-servicer basis, and includes the following: (i) the absolute number of trial modifications begun by each servicer; and (ii) a simple performance metric which measures each servicer’s performance relative to an estimate of the servicer’s Home Affordable Modification Program (HAMP) eligible loans. Of the top mortgage servicers, the report states that Bank of America and Wells Fargo have initiated trial modifications on only 4 percent and 6 percent of eligible loans, respectively, while JPMorgan Chase and Citibank have initiated trial modifications on 20 percent and 15 percent of eligible loans, respectively