JPMORGAN HAMP FAIL: 200,000 HAMP Mods offered, Only 2% Permanent?
Here is the presentation from JPMorgan Chase yesterday, Dec, 8, 2009 at the Goldman Sachs Financial Services Conference…
Page 18 in the presentation shows the progress of the various modification programs at JPM Chase. Only 2% HAMP trial modification have become permanent (4,302 of 199,033 trial mods).
Stats:
29% of customers do not make required payments
71% of customers make all 3 required payments
51% do not submit all documents required or submitted documents that require refinement for underwriting
Many borrowers return forms missing key information (signatures, SSN, etc.) or do not return one of four required documents
Current outreach strategy includes 36 calls, 15 letters, and 2 door-knocks per account prior to cancellation for missing documents.
4closureFraud
https://4closurefraud.org/
Especially interested in these figures through Nov 30, 2009:
MODS OFFERED: 199,033
PERM MODS: 4,302
Now, I think I remember something about a borrower being automatically disqualified from the program if 1) there can’t be a second mortgage on the home and 2) the mortgage balance can not be greater than 125% of the current home value.
So, I wonder if some of those 199,033 were offered mods were 1) a monthly payment adjusted UPWARDS or 2) to borrowers fitting the two criteria above who then made 3 modified payments, were told they were disqualified and then were out the funds paid those 3 months (funds which the homeowner would have not put towards an untenable mortgage)?
Lisa E.
It seems that every Government program that has been initiated has failed miserably. I meet with homeowners daily, who wait for the government programs to “Save their home” and instead they end up in foreclosure. The biggest misconception is that lenders have to modify these loans, and the truth is they don’t! The only way to give homeowners their POWER back, is to gain Legal Leverage, and demonstrate the loan was built on Fraudulent terms in the first place.
Until this happens people will continue getting denied Loan mods, or will be strung along with 3 month trial period’s that lead to a place called nowhere. Read this article from an industry insider who talks about “Why loan modification’s don’t work”.
http://www.sacforums.com/us_loan_auditors/why_loan_modifications_dont_work-t2709.0.html
I truly hope people get some type of help, and become more aware of how the banks really work.
“Outreach” is a joke!