HAMP Trial Mods Have Plateaued

Remember all that talk about the HAMP program and how it would save us all? Well, it seems that the number of trial loan modifications have plateaued. A recent HAMP report from the Treasury Department showed 15,153 borrowers starting trial loan modifications in June, compared with 110,000 during the same month a year ago

Since the vaunted debut of the HAMP program, loan servicers have started 1.28 million trial modifications. Yes, trial mods. Of those borrowers — 520,814 — have seen their trial modifications canceled. Only 398,021 have been moved into permanent loan mods, while 364,077 continue in trial modifications.

With these numbers we’re not surprised to find that the cancellation rate on permanent loan modifications dropped, with only 8,823 dropping out of the program. Loan servicers moved 51,205 borrowers into permanent modifications in June, which marked the sixth consecutive month in which growth in permanent modifications has averaged more than 50,000.

The numbers also show that among HAMP permanent modifications in place for at least six months, less than six percent sit 60 days delinquent, and less than two percent of those homeowners find themselves delinquent by 90 days or more.

The numbers don’t lie but here in the Bay Area we find that significant number of people who actually qualify for the HAMP program find themselves falling out of the program several months or even weeks later.

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