The Treasury Department is withholding financial incentives from three of the 10 major mortgage servicers participating in the Obama administration’s Making Home Affordable loan modification program, the department announced today in its latest report.
For the first time, the administration’s monthly "housing scorecard" contained compliance assessments of the 10 largest servicers in the program. Of the 10, four were deemed to need "substantial improvement" in several metrics in the first quarter: Bank of America, NA; J.P. Morgan Chase Bank, N.A.; Ocwen Loan Servicing LLC; and Wells Fargo Bank, N.A.
The Treasury Department will withhold incentive payments from all but Ocwen Loan Servicing, which acquired a large servicing portfolio during the quarter that negatively affected its compliance results.
Incentive payments include payments for every successful permanent loan modification instituted under the Home Affordable Modification Program (HAMP) and for every completed short sale or deed-in-lieu under the Home Affordable Foreclosure Alternative Program (HAFA), the report said.