Wells Fargo (NYSE: WFC) announced Friday that it started 24,975 new mortgage modification trials in February under the government’s Home Affordable Modification Program, up 41 percent from a month prior. The bank now has 139,065 active trial modifications and completed modifications through HAMP, as of February 28.
Wells’ said of those HAMP modifications, 24,975 are now permanent modifications and another 7,533 are set to become permanent pending completion of paperwork.
The bank reported a total of 505,832 active trial and completed mortgage modifications between its own programs and the government’s HAMP.
“HAMP is and will continue to be an important part of our efforts to keep people in their homes, but we are using every tool available to us to help prevent foreclosures whenever possible,” added Heid.
The bank also reported that 19,000 HAMP trial modifications have been cancelled because borrowers did not meet the prescribed guidelines; 11,000 of the cancellations came in February.
However, Wells went on to say that roughly 60 percent of those cancelled from the HAMP trials would likely retain their home through other non-HAMP modifications or other workout options, while 10 percent of those borrowers will likely pay off their loan in good standing. The remaining 30 percent they do believe will end up entering foreclosure proceedings.
Wells Fargo has generally been ahead of the curve on the mortgage modification effort. Beginning March 1, ahead of the Treasury’s June 1 deadline, the bank began requiring income verification from customers before placing them into a trial Home Affordable Modification.
Wells Fargo said it promoted this practice when HAMP first began and believes it gives servicers the information necessary to make better decisions for customers at the outset of the process.
