Wells Fargo Serviced Over 687,000 Mortgage Modifications Since 2009
Since 2009, Wells Fargo has started or completed 687,047 mortgage modifications in its servicing portfolio.
The lender has completed 85%, or 585,213 modifications, through its own company program and only 101,834 through the federal government’s Home Affordable Modification Program.
“Avoiding foreclosure is a top priority for us and when customers work with us, we can help seven out of every 10 to stay out of foreclosure,” said Teri Schrettenbrunner, senior vice president of Wells Fargo Home Mortgage.
As of 1Q 2011, approximately 93% of Wells Fargo’s loan customers remained current on their home payments.
From January 2009 through May 2011, the company has helped 2.7 million consumers reduce their mortgage payments through refinancing due to historically low interest rates. Fewer than 2% of the loans secured by owner-occupied homes and serviced by Wells Fargo have proceeded to a foreclosure sale over the past 12 months.
In addition, the company reports that its delinquencies continue to decline.
One reason why the lender has had success helping homeowners is providing a primary contact for borrowers to speak with about their modification. Wells Fargo initiated this single point of contact process in June 2010, which all servicers have to comply with starting in September, “so that a customer knows exactly who they are working with on a modification from beginning to end,” the lender said.
For customers who are 60 or more days delinquent on their home loans, the lender has reached out to these individuals by mail and telephone in an effort to engage them. In 2011, Wells Fargo said it has doubled its efforts via large-scale home preservation workshops in order to provide increased face-to-face support for customers in areas challenged with foreclosures.
“We have met face to face with more than 58,000 customers at 31 large-scale home preservation workshops around the country or at one of the 27 home preservation centers located in communities hard hit by the housing crisis,” said Schrettenbrunner. “We are successful in helping half of the customers who attend the home preservation workshops with a decision on the spot or shortly after the workshop. The rest take a little more time to work through the complexities of their individual situations.”