One of the top mortgage lenders, Wells Fargo is making strides in mortgage modifications, both under the government’s foreclosure rescue program, and at twice the rate with non-governmental mortgage reduction trials.
The U.S. Treasury’s report on the Obama Administration program – Home Affordable Modification Program (HAMP) – placed Wells Fargo third in total active modifications with 137,128 through January, behind Bank of America and JPMorgan Chase.
But Wells Fargo released its own report. It has done more than 350,000 “non-HAMP” active modifications and completed mortgage reductions – approving borrowers for reduced monthly payments – since the beginning of 2009 through January 2010.
From October 2009 through last month, Wells Fargo said it initiated or completed three modifications for every one foreclosure sale on owner-occupied properties.
“We continue to use a range of options to help customers facing home ownership hardships whenever possible,” said Mike Heid, co-president of Wells Fargo Home Mortgage. “Our customers, communities and investors all benefit whenever a reasonable alternative to home foreclosure can be found.”
Despite borrower and consumer skepticism aimed at all major mortgage lenders and their modification efforts, Wells Fargo seems to be making some headway.
The Nov. 27 edition of Inside Mortgage Finance showed the company’s delinquency and foreclosure rates were “two-thirds that of the industry in the third quarter of 2009.”
In the HAMP January report, Wells Fargo placed fourth – tied with JPMorgan Chase – with a 38 percent share of eligible borrowers placed in active modifications. Eligible homeowners are those 60 days late on their mortgage. HAMP’s overall rate is 28 percent of those eligible.
