Real NEWS | Treasury Scolds HAMP Lenders

While for some, it might seem like too little, too late—I do think it’s encouraging that the Treasury is calling out some of the major lenders and their lackluster performance when it comes to the Home Affordable Modification Program (HAMP).  As part of their monthly HAMP report, the Treasury added ratings for the top 10 HAMP Servicers.  The 4 that received the worst ratings, needing “substantial” improvement were: Bank of America, Chase, Ocwen Loan Servicing, and Wells Fargo.  This comes as a surprise to absolutely no one.  Except, perhaps to the Servicers themselves.  Or at least their PR departments would like us to think so.  There’s a humorous response to their protests, written by Martin Mandelman, which you might enjoy.

The remaining 6 were cited as needing “moderate” improvement: American Home Mortgage Servicing, CitiMortgage, GMAC Mortgage, Litton Loan Servicing, OneWest, and Select Portfolio Servicing.

The most telling, perhaps, is that there was not a single Servicer who was identified as need “minor” improvement.  Clearly, there’s a long way to go. But, I do think it’s a step in the right direction for the Treasury to turn up the heat on Servicers and hold them more accountable.  Let’s hope the trend of accountability continues.

In the meantime, if you’re struggling to make payments, trying to determine whether or not to seek a loan modification, pursue a short sale—or you’re just not sure what to do—please don’t hesitate to reach out and let me know.  I’m happy to connect you with the resources you need.  Despite the unimpressive performance of all these Servicers, there are indeed resources out there and real alternatives to foreclosure.  The important thing is to be proactive.