Home > Foreclosure alternatives > Largest Servicers Get Low Grades on HAMP Report Card

Largest Servicers Get Low Grades on HAMP Report Card

The three largest mortgage servicers in the country all had problems complying with the Home Affordable Modification Program.

JP Morgan Chase, Wells Fargo, and Bank of America — the nation’s three largest mortgage servicers — were all called out by the Treasury Department for receiving poor grades in complying with HAMP, according to an article on DSNews.com.

The Treasury Department has since ordered the servicers to change the way they solicit borrowers for the government’s loan modification program, and the way they evaluate borrowers’ eligibility.

Freddie Mac, which is the compliance agent for HAMP, conducts “second look” evaluations of some borrowers’ who were either not approved or who were not offered modifications, and they can order servicers to reevaluate these loans.

“Non-compliance rates for both Wells Fargo and JPMorgan Chase were above the average and resulted in requiring the servicers to make changes to their solicitation and eligibility processes,” Treasury said in the report, adding that further evaluations have been conducted to ensure the companies are making the mandated changes.

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