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"Mortgage servicers uneven on new HAMP uptake"

Housingwire..By Jon Pryor...Jun 20, 2012

"Mortgage servicer uptake of the expanded Home Affordable Modification Program announced earlier this year is mixed, according to the Government Accountability Office.

The Treasury Department relaxed debt-to-income requirements and said it would triple payments to investors who allow principal reduction under the program. Not all servicers were able to install the changes by the June 1 deadline, according to the GAO report, and the results so far varied.

The GAO asked five different servicers how the changes would affect their modification count under HAMP but did not name the companies. One expected a 15% to an 18% increase in workouts because of the expanded DTI range.

 Modification trials and permanent conversions have been on the decline since 2010 as the pool of eligible borrowers shrank from an estimated 1.4 million in December 2010 to less than 900,000 at the end of last year"

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  • July 21 2012 - US
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