Posted on Wednesday, October 27, 2010
By: Carrie Bay DSNews.com
The Treasury Department released its monthly progress report on the administration’s flagship foreclosure-prevention program Monday, and the results show that the Home Affordable Modification Program (HAMP) is continuing to lose steam.
Servicers completed just 28,000 permanent HAMP mods during the month of September – 16 percent fewer than the previous month. Since its launch in March 2009,
HAMP has provided new, sustainable mortgages to 466,708 distressed homeowners (the current number of active permanent modifications).
Cancellations continue to plague the program, which President Obama initially promised would help three to four million borrowers keep their homes.
Through September, 699,924 trial modifications and 29,190 permanent modifications have been canceled – more than half of all 1,369,414 mortgage mods initiated through the program.
While fewer homeowners are qualifying for assistance under HAMP, officials tout the program’s “rigorous standards” as an insurance policy for better post-mod performance than what’s been reported by the industry at-large.
According to the Treasury’s report, at nine months, 11 percent of borrowers who’d received a permanent HAMP modification had re-defaulted on the new loan. About 16 percent were 60-plus days delinquent.