Tuesday, March 09, 2010

Report: HAMP Modification Conversion Rate at about 33%

by Calculated Risk on 3/09/2010 10:39:00 PM

From Shahien Nasiripour at the Huffington Post: Obama Foreclosure-Prevention Plan Lagging, New Data Shows

Only about a third of the homeowners who have successfully completed the trial period of the Obama administration's mortgage modification program have been offered permanent relief, according to new federal data obtained by the Huffington Post.

The conversion rate -- about 33 percent -- is woefully short of what the Treasury Department had forecast. ...

The new data was contained in a series of answers by Treasury Secretary Timothy Geithner to questions posed by Neiman and his colleagues on COP, including Harvard Law professor and bailout watchdog Elizabeth Warren.

"As of the end of January there were over 116,000 permanent modifications and over 67,000 permanent modifications pending final approval," Geithner wrote in his letter, which the panel received last week. "This group of approximately 180,000 permanent and pending permanent modifications represents about a third of the population of total modifications who have completed the trial modification and are at a point in the process where they are able to convert to permanent."
No real surprise - there is much more in the article including some interesting comments about a possible principal reduction program.

The HAMP report for February will probably be released late next week, and the numbers will be closely scrutinized.