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.