Treasury withholds HAMP funds from BofA, Chase again

By
Real Estate Agent with Keller Williams Town & Country Realty

http://www.housingwire.com/2011/09/01/treasury-withholds-hamp-funds-from-bofa-chase-again


Thursday, September 1st, 2011, 1:00 pm


The Treasury Department will withhold payments once again to Bank of America (BAC: 7.45 +6.58%) andJPMorgan Chase (JPM: 34.8195 +4.13%) for their poor performance modifying mortgages in the second quarter.

Both banks need substantial improvement to their operations within the Home Affordable Modification Program, according to the compliance review conducted by the Treasury.

In the first quarter, the federal agency elected to withhold payments from these two banks and Wells Fargo (WFC: 24.92 +4.18%). Since then, Wells made the mandated improvements. Though some moderate work is still needed from the bank, the Treasury will return previously withheld funds.

If BofA and Chase continually fail to make the corrections, the Treasury could permanently reduce payments to the banking giants.

The Treasury compliance team looked at how each participating servicer performed when contacting homeowners, evaluating them for the program and how they assisted with any questions or document submissions. Including these judgments, the Treasury also looks at HAMP data gathered by Fannie Mae to determine which servicers need improvement.

Since HAMP launched in March 2009, servicers started more than 791,000 permanent modifications with roughly 28,000 reported in July, according to the latest Treasury data. Roughly 1.6 million trials have been extended, and more than 763,000 canceled due to a redefault or not enough information was submitted.

"While tens of thousands of additional homeowners benefit from the administration's programs each month, we need to keep the pressure on servicers to effectively assist those homeowners who are still struggling and eligible for assistance," said Treasury Assistant Secretary for Financial Stability Tim Massad.

"We continue to make significant improvements to our processes and controls. We expect future scorecards will reflect that," a Chase spokesman said.

A Bank of America spokesman said ratings did improve for the bank in nearly all ratings and metrics. One in four of all HAMP modifications belong to BofA, and the spokesman said the bank is committed to preventing foreclosures for unemployed, underemployed and other troubled borrowers.

"We are working to achieve the ratings necessary to reinstate incentives, but we are not driven by that goal," the spokesman said.

The Treasury uses Troubled Asset Relief Program funds to pay servicers $1,000 for every permanent modification and another $1,000 every year the new loan is current.

Including BofA, Chase, and Wells, 10 servicers still show a need for some improvement, unchanged from the previous review. The Treasury determined American Home Mortgage ServicingCitigroup's (C: 28.96 +4.55%)CitiMortgageOcwen Financial Corp. (OCN: 13.38+2.45%) and Select Portfolio Servicing each need to make moderate improvements.

Ally Financial's (GJM: 22.28 +1.60%GMAC Mortgage,Goldman Sachs' (GS: 108.25 +3.53%) now sold Litton Loan Servicing and OneWest Bank were revised to need only minor improvements.

"These assessments provide an unprecedented level of information about servicer performance and are designed to help more eligible homeowners walk away from this process with better results," Massad said.

Write to Jon Prior.

Follow him on Twitter @JonAPrior.

Posted by

 

 

Mike Carlos-Realtor
Short Sale & Foreclosure Specialist
Team Carlos, Realtors
 Tallahassee's #1 Short Sale Team Keller Williams Town & Country Realty
(850) 583-1919
Mike@TeamCarlos.info
www.TeamCarlos.info

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
Florida Leon County Tallahassee
Groups:
Almost Anything Goes
Keller Williams
Northeast Florida Real Estate Professionals
Northwest Florida Realtors and Associates
Short Sale REALTORS®
Tags:
tallahassee
florida
short sale
team carlos realtors
chase
foreclosure
wells fargo
bank of america
bank of america short sales

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the sunglasses to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
277,179
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA
- Pierce, King, Kitsap, Thurston, Mason Counties

Mike,  Thanks for getting this information out to us.  It is appreciated.

September 07, 2011 05:15 PM #1
Rainmaker
120,800
Mike Carlos
Keller Williams Town & Country Realty - Tallahassee, FL
Realtor, Tallahassee FL

No problem at all, Steven!

September 08, 2011 10:59 AM #2
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
120,800

Mike Carlos

Realtor, Tallahassee FL
Let us sell your home with no hassles for you!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: