Top 10 Servicers Rake in Most of Treasury Loan Mod Incentives
The Treasury Department has allocated $29.9 billion to 96 servicers participating in the government’s loan modification programs, but only $4.6 billion of those TARP funds have been paid to servicers, investors and borrowers as of yearend 2012.
A new report by the Special Inspector General for TARP says $4.1 billion has been paid out for completed modifications on first and second mortgages and $407 million in incentive payments on short sale and deed-in-lieu transactions.
Of the combined amount of incentive payments, according to Treasury, approximately $1.4 billion went to pay servicers, $2.2 billion when to investors and $920 million went to borrowers.
The SIGTARP report also points out that Treasury has committed nearly 90% of the $29.9 billion to pay for loan modifications and short sales that are completed by the 10 largest participating servicers.
The 10 servicers have received $1.3 billion in incentive payments since the Making Home Affordable program was launched in the fall of 2009.
JPMorgan Chase has received nearly $300 million in incentive payments and Bank of America has received $266.7 million.
The Treasury Department expects to be paying incentives on loan modifications through 2019.