HAMP Update: JP Morgan Chase (NYSE: JPM), Citigroup (NYSE: C) and Morgan Stanley (NYSE: MS) Lead the Pack, Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) Have Room to Improve

JP Morgan Chase (NYSE: JPM), Morgan Stanley (NYSE: MS) and Citigroup (NYSE: C) have done the best job of modifying mortgages for troubled borrowers under the Obama administrations primary efforts to prevent foreclosure on residential real estate, according to a new report from Treasury Department. The report also stated that Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) have performed the fewest modifications of any major banks.

Citigroup, the third largest bank in the United States by assets, began 88,968 trial modifications, which accounted for about 40% of mortgages that were eligible through October, under the Home Mortgage Affordability Program (HAMP) launched earlier this year.

JP Morgan also has made significant efforts under the Home Mortgage Affordability Program, making modifications for 133,988 modifications, or 32% of homeowners that were eligible under the program. Morgan Stanley’s mortgage-arm, Saxon Mortgage Services, made trial modifications for 44% of its 80,477 eligible loans.

According to the Treasury Department’s data, about 20% of total eligible homeowners have received trial modifications under the government plan. In the Treasury Department’s statement, Assistant Treasury Secretary Michael Barr commented, “We’re reaching borrowers at a larger scale than any other modification program to date, but there’s still much more work to be done.”

By the end of October, there were a total of 650,994 mortgage modifications that have been started, which is up from 487,081 modifications at the end of September.

Bank of America and Wells Fargo have both performed the poorest under the program. Bank of America has modified just 14% of its 990,628 eligible loans, despite having the most modifications eligible under the program. Wells Fargo has modified 29% of the 323,198 eligible loans that the bank has.

To both banks’ credit, they have improved in the last several months. Bank of America made 42,076 modifications during the month of October alone, representing 4.25% of its eligible mortgages. Meanwhile, Wells Fargo increased its modification rate from 20% to 29% from September to October.