Bolstered by the big four banks' loss mitigation efforts, the total number of active permanent modifications completed under the administration's Home Affordable Modification Program (HAMP) jumped to 389,198 as of the end of June, the Treasury Department reported Tuesday.
According to Treasury's monthly HAMP report card, the total number of permanent modifications started in June increased nearly 15 percent from the previous month, as servicers completed an additional 51,205 permanent modifications during the month. More than half Ã¢â‚¬" 26,525 Ã¢â‚¬" of these were initiated by nation's four largest banks Ã¢â‚¬" Bank of America, Wells Fargo, JPMorgan Chase, and CitiMortgage.
Bank of America led the pack once again with 9,263 permanent modifications completed during the month of
June. JPMorgan Chase came in next with 7,255 permanent modifications for the month, and Citi took the No. 3 spot with 6,138 permanent modifications completed in June. Of the big four banks, Wells Fargo came in last, as it completed just 3,869 permanent modifications during the month.
On a cumulative basis, Bank of America retained its No. 1 ranking with a total of 72,323 permanent modifications completed through June, and JPMorgan Chase kept its second place spot with 54,722 permanent modifications. Citi and Wells Fargo switched places, though, as Wells Fargo reported a total of 44,628 permanent modifications, and Citi reported 40,813 permanent modifications.
When permanent modifications were viewed on a conversion basis, a different round of servicers claimed the top rankings. The conversion rate of permanent modifications is measured against trials eligible to convert Ã¢â‚¬" those that have been in trial for three months (or four months if the borrower was in imminent default).
According to Treasury's report, HomeEq Servicing had the highest permanent modification conversion rate in June, coming in at 89 percent. Carrington Mortgage Services moved up to the No. 2 spot with an 80 percent conversion rate, and Wachovia came in next with a 77 percent conversion rate. Ocwen, which had held steady at an 83 percent conversion rate in months prior, moved down to the fourth spot with a conversion rate of 71 percent in June.