Half of HAMP Principal Reductions Go to 3 States


HAMP servicers have completed nearly 151,000 loan modifications where the borrowers benefit from principal reductions and 129,000 of those loans are still active, according to a new Treasury Department report.

The median principal reduction per loan is 30%, according to the July Home Affordable Modification Program report. The median loan-to-value ratio is reduced to 115% from 150% before the modifications.

Over, half (54%) of the HAMP principal reductions were completed in three states (California, Florida and Illinois) and 34% went to struggling California homeowners.

The Treasury HAMP report shows Ocwen Loan Servicing LLC, JPMorgan Chase Bank NA and Wells Fargo Bank NA started and completed the most HAMP principal reduction modifications.

Treasury reported that Ocwen has completed 34,250 permanent principal reduction mods, compared to 26,800 by JPMorgan and 22,600 by Wells Fargo.

The GSE regulator does not permit principal reductions on Fannie Mae and Freddie Mac loans.

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