Servicers Targeted for Re-Defaults of HAMP Mods, Treasury Resisting Significant Changes
August 1, 2013
The Special Inspector General for the Troubled Asset Relief Program is pressing the Treasury Department to focus on servicer actions as part of efforts to reduce re-default rates in the Home Affordable Modification Program. The Treasury has pushed back against the suggestions, stating that it is always looking to improve the program. In a report published last week, the SIGTARP said HAMP mods have re-defaulted at an alarming rate. As of the end of April, the re-default rate on HAMP mods completed in 2009 was 46 percent and the re-default rate for HAMP mods completed in 2010 was 38 percent. While HAMP has helped...