Treasury Report Reveals Performance of Largest Servicers
On Friday, Treasury released the Making Home Affordable Program report, which details performance from the nine largest servicers participating in the Making Home Affordable (MHA) program.
The most recent August servicer report provided data on servicers’ ability to reach out to delinquent homeowners who are at least 60 days behind to inform them of the program.
The results were from August 2011 to July 2012, and revealed GMAC led with a 97 percent right-party contact (RPC) ratio. Right party contact occurs when a servicer has successfully communicated with the correct homeowner about resolving the delinquency based on program guidelines. The RPC ratio is the share of homeowners the servicer has established RPC with as a percent of HAMP eligible loans.
OneWest followed GMAC closely at second, with a 95 percent RPC ratio. Bank of America established a 93 percent RPC ratio, followed by Homeward Residential (92 percent), which will be acquired by Ocwen Financial. Wells Fargo also had a notably high RPC ratio of 90 percent.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
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The most recent August servicer report provided data on servicers’ ability to reach out to delinquent homeowners who are at least 60 days behind to inform them of the program.The results were from August 2011 to July 2012, and revealed GMAC led with a 97 percent right-party contact (RPC) ratio. Right party contact occurs when a servicer has successfully communicated with the correct homeowner about resolving the delinquency based on program guidelines. The RPC ratio is the share of homeowners the servicer has established RPC with as a percent of HAMP eligible loans.
OneWest followed GMAC closely at second, with a 95 percent RPC ratio. Bank of America established a 93 percent RPC ratio, followed by Homeward Residential (92 percent), which will be acquired by Ocwen Financial. Wells Fargo also had a notably high RPC ratio of 90 percent.
The report also revealed servicers’ performance when converting eligible trials into permanent modifications on or after June 1, 2010. Homeward Residential and OneWest had the highest conversion rates, with both seeing 90 percent of trials turn into permanent modifications. The report stated the average trial length is 3.5 months.
When resolving borrower disputes related to the MHA program, the largest servicers resolved the issues within the required 30-day time frame.
According to the report, examples of escalations include allegations that the servicer did not properly assess the homeowner according to program guidelines, inappropriately denying the homeowner for applicable MHA program(s), or initiated or continued inappropriate foreclosure actions. The servicers assessed resolved cases within 30 days in this most recent third quarter and in the second quarter of this year.
To encourage servicers to modify homeowners at an early stage of delinquency, monetary incentives are higher for servicers who complete a modification on a loan that was 120 days delinquent or less at trial start. None of the nine major servicers averaged less than 120 for homeowner delinquency at trial start.
The Obama administration’s housing scorecard was also released in conjunction with the Making Home Affordable report. The scorecard reiterated an assessment of the housing market seen in previous reports: the industry is showing signs of a recovery, but the recovery is still “fragile.”
The scorecard is jointly released by HUD and Treasury, and provides a report on the state of housing based on a wide range of data.
Rising home values, which have lifted 1.3 million homeowners out of negative equity since the beginning of this year, and existing home sales in August, which reached a two-year high, were all given mention as signs of a strengthening market.
When resolving borrower disputes related to the MHA program, the largest servicers resolved the issues within the required 30-day time frame.
According to the report, examples of escalations include allegations that the servicer did not properly assess the homeowner according to program guidelines, inappropriately denying the homeowner for applicable MHA program(s), or initiated or continued inappropriate foreclosure actions. The servicers assessed resolved cases within 30 days in this most recent third quarter and in the second quarter of this year.
To encourage servicers to modify homeowners at an early stage of delinquency, monetary incentives are higher for servicers who complete a modification on a loan that was 120 days delinquent or less at trial start. None of the nine major servicers averaged less than 120 for homeowner delinquency at trial start.
The Obama administration’s housing scorecard was also released in conjunction with the Making Home Affordable report. The scorecard reiterated an assessment of the housing market seen in previous reports: the industry is showing signs of a recovery, but the recovery is still “fragile.”
The scorecard is jointly released by HUD and Treasury, and provides a report on the state of housing based on a wide range of data.
Rising home values, which have lifted 1.3 million homeowners out of negative equity since the beginning of this year, and existing home sales in August, which reached a two-year high, were all given mention as signs of a strengthening market.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
Charlottesville Real Estate Experts
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