Servicers have restructured nearly half of all second mortgages sitting in their portfolios that are eligible for a HAMP second lien modification program known as 'MP2.'
The Treasury Department reported this week that Home Affordable Modification Program servicers have started modifications on 54,800 second liens out of 115,750 seconds that are eligible under the MP2 initiative.
Many of the remaining second liens are "either still in the evaluation process by servicers, awaiting homeowner response to the MP2 offer, or awaiting conversion of the first lien trial to permanent modification,” according to the November HAMP activity report.
The monthly report includes more data on the 2MP program than usual. Since Treasury rolled out the 2MP initiative in April 2010, Bank of America has initiated action on 20,400 second liens out of an eligible universe of 42,000.
Wells Fargo Bank has started 9,900 2MPs out of 17,780 eligible seconds, with JPMorgan Chase initiating action on 10,700 out of 28,700 eligible ones.
Currently, modifications are active on 43,959 seconds across the nation. The median reduction in the borrower's monthly payment is $163.
Overall, borrowers have defaulted on 1,000 2MPs but have paid off 77 second liens.
HAMP servicers also have the option to partially or fully extinguish a second lien. Nearly 9,800 second liens have been fully extinguished on a median note size of $60,700.
Meanwhile, servicers completed 26,900 permanent HAMP modifications on first mortgages in November, compared to 26,100 in October.
HAMP servicers also completed nearly 3,010 2MP mods in the month of November.
