Mortgages: Which Lenders Are Modifying Loans?
Along with the Treasury announcement yesterday that 230,000 borrowers have started loan modification trials, the government also released figures showing the level of modification activity among leading lenders
The government looked at loans that were at least 60 days delinquent and then at the number of mortgage workouts which followed.
Leading the league was Lake National Bank with a 100% modification rate. In this case that would be one late borrower and thus one modification offer. Lake National ought to be congratulated for having mortgage standards which apparently created few delinquent borrowers.
Saxon Mortgage Services had 84,130 delinquent loans, offered modifications to 30,817 borrowers and 21,130 have started trial loan periods — that means 25 percent of the eligible borrowers have started three-month loan trials.
Among big lenders, Saxon did better than Aurora (21%), GMAC (20%), Residential Credit (20%), Nationstar (19%) and Citimortgage (15%). RG Mortgage, Home Loan Services and National City Bank each had a 0% modification level, according to the Treasury Department.
The Bank of America, which took over Countrywide, is at 4%, Wells Fargo is at 6% and Wachovia is at 2 percent.
Given that the federal effort only began in March, it follows that it would take the private sector a little time to get going with the program. For this reason we should see higher percentages in the future — and because the Treasury will be issuing monthly reports we will indeed see something….
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