Posted on Tuesday, May 18, 2010
April data shows 299,092 permanent modifications, an increase of 68,000/almost 13% over March, have been initiated. 3,744, out of about 300,000 permanent loan modifications given, cancelled or re-defaulted.
So far, trail modification offers have been extended to 1.4 million of the 1.7 million eligible delinquent borrowers and 1.2 million trials have been started.
So far Ocwen Financial and HomEq Servicing have the highest permanent mod conversion rates, 83%. Both use verified income, rather than stated income for trial approval. Beginning June 1, all servicers will have to do the same.
The 4 biggest banks all rank around 20th percentile in conversion rates and use stated income for trial mod approval. Bank of America’s and Wells Fargo’s conversion rates are 25%. JPMorgan Chase 22%. Citi’s 21%.