Industry NewsMortgage

Growth in HAMP program cools

Borrowers continue to transition from trial to permanent loan mods

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Editor's note: This story has been edited to correct that 15,153 borrowers started trial modifications in June.   The number of trial loan modifications offered by loan servicers participating in the Obama administration's Home Affordable Modification Program appears to be reaching a plateau, although the number of borrowers moving into permanent modifications continues to show steady growth. The latest HAMP report from the Treasury Department showed 15,153 borrowers starting trial loan modifications in June, compared with 110,000 during the same month a year ago. Since the HAMP program's inception, loan servicers have begun 1.28 million trial modifications. More than a third of those borrowers -- 520,814 -- have seen their trial modifications canceled. Another 398,021 have been moved into permanent loan modifications, and 364,077 are still in trial modifications. The cancellation rate on permanent loan modifications has been lower, with only 8,823 dropping out of the program. Loan ...