Mortgage Modification: The "Good" and "Bad" Lenders -- July 2009 edition

Last Updated Oct 7, 2009 2:36 PM EDT

A few days ago I wrote about the mortgage modification crisis, pointing out (as have so many others), that millions of people who desperately needed government help to stay in their homes weren't getting it.

Now, the government has released the first list of which servicers are at least attempting to modify loans. The report, formally titled the "Making Home Affordable Program Servicer Performance Report through July 2009," explains how banks are doing with HAMP -- the government's Home Affordable Modification Program. (Yes, I know it should be "Affordability;" I didn't title it).

The bad news? As USA Today reports, "Several Loan Servicers Have Not Modified a Single Mortgage"

Now some of these banks will note that they just signed contracts to get into the HAMP program -- but you know what? They knew the program was coming, and it's pretty pressing business to keep people facing foreclosure in their homes.

The good news? Some of the big banks are actually in there pitching (JP Morgan Chase and GMAC Mortgage, take a bow; PNC, get back in line!).

So here, from the list that's current through July, the report card. The numbers in parentheses are the percentage of loans eligible for modification that have been moved into trial modification:

HAMP Heroes
  1. Lake National Bank, Mentor, Ohio (100%) [Okay, that's one loan, but a gold star is still a gold star]
  2. Wescom Central Credit Union, Pasadena, California (28%)
  3. Citizens First Wholesale Mortgage Company, The Villages, Florida (27%)
  4. Saxon Mortgage Services, Irving, Texas (25%)
  5. Aurora Loan Services, Littleton, Colorado (21%)
  6. GMAC Mortgage, Fort Washington, Pennsylvania (20%)
  7. JP Morgan Chase, New York, New York (20%)
  8. Residential Credit Solutions, Fort Worth, Texas (20%)
HAMP Horrors (no loans yet modified)
  1. American Home Mortgage Servicing Inc., Columbia, Maryland
  2. Farmers State Bank, West Salem, Ohio
  3. First Bank, St. Louis, Missouri
  4. Home Loan Services Inc., Pittsburgh, Pennsylvania
  5. Mission Federal Credit Union, San Diego, California
  6. MorEquity, Inc., Evansville, Illinois
  7. Mortgage Center LLC, Southfield, Michigan
  8. PNC Bank, National Association, Pittsburgh, Pennsylvania
  9. Purdue Employees Federal Credit Union, West Lafayette, Indiana
  10. RG Mortgage Corporation, San Juan, Puerto Rico
  11. Shore Bank, Chicago, Illinois
  12. Wachovia Bank, Charlotte, North Carolina
Read More:
  • Alison Rogers

    Since graduating from Harvard summa cum laude, Alison Rogers has been a reporter, an editor, a real-estate agent, a Wall Street desk jockey, a columnist, a failed flipper, and a landlady. A member of the National Association of Realtors, she currently sells and rents luxury co-ops in Manhattan for the Chelsea-based firm DG Neary. (If you've got $27,500 a month, the firm has an apartment for you!) Her book, Diary of a Real Estate Rookie, was called "a valuable guide for rookie buyers" by AOL/Walletpop, "beach-read fun" by the New York Observer, and "witty" by Newsweek.

Comments

CBSN Live

pop-out
Live Video

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Market News

Stock Watchlist