HAMP Loan Mods Soar in December

The Treasury Department's push for residential servicers to complete more HAMP loan modifications appears to be working as the number of permanent restructurings soared during December and now stands at 66,000 units. The Obama administration launched the Home Affordable Modification Program last spring but only 31,382 modifications had been completed by the end of November. But In December, another 35,043 HAMP modifications were completed. Treasury assistant secretary Michael Barr acknowledged this acceleration in modifications as well as the status of another 46,000 borrowers who are close to signing the final documents for a HAMP modification. But Mr. Barr said the conversion rate of borrowers going from the three-month payment trials to a permanent modification is still "disappointing." He wants some servicers to "pick up the pace." Last month, Treasury officials began ratcheting up the pressure by monitoring HAMP servicers' modification conversion rates on a daily basis. They also initiated a consumer outreach effort to get borrowers in HAMP trials to submit the documents needed to complete a modification.