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Carrington, Aurora Sign Federal Loan Mod Contracts

Two more servicers have been added to the government's list of mortgage ""companies officially under contract"":http://www.makinghomeaffordable.gov/contact_servicer.html to provide federal loan modifications through its Home Affordable Modification Program -- ""Carrington Mortgage Services"":http://www.carringtonms.com, of Santa Ana, California, and ""Aurora Loan Services"":https://www.alservices.com of Littleton, Colorado. Carrington is slated to receive up to $195 million in incentive payments for its participation in the program. Aurora has been allocated $798 million.
Government officials have released a steady stream of company names participating in the program since the servicer contracts became available in mid-April. The nation's largest lenders - including JP Morgan Chase, Wells Fargo, Citi, and the Bank of America-Countrywide conglomerate - have agreed to provide mortgage modifications under the federal guidelines. Specialty subprime servicer Ocwen Financial has also signed on to participate, along with GMAC, Saxon Mortgage, Select Portfolio Servicing, Wilshire Credit Corporation, Home Loan Services, and Green Tree Servicing.
The administration has said it will commit $75 billion to the Home Affordable Modification Program, $50 billion of which will come out of the $700 billion bailout fund, with the remaining cash provided from other government sources. Of that amount, a little over ""$15 billion has been allocated"":http://www.financialstability.gov/latest/reportsanddocs.html to the fourteen servicers that have already signed on to the program.
The Treasury Department says that between the loans covered by these fourteen companies and loans owned or securitized by Fannie Mae or Freddie Mac, more than three-quarters of all loans in the country are now covered by the Making Home Affordable Program.
The administration has estimated that the modification piece of its housing program will secure lower monthly payments for 3 to 4 million at-risk homeowners, while the refinance initiative will provide mortgage relief for another 4 to 5 million.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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