HAMP: Improved Conversion Rate Helps Boost Permanent Loan Mods in March

Metrics for the Making Home Affordable Program (HAMP) improved substantially during March according to data released late Wednesday by the Treasury Department.  The foreclosure prevention program, a joint effort by Treasury and the Department of Housing and Urban Development, has been widely criticized for its effectiveness in moving distressed borrowers into permanent loan modifications.

During the March, however, over 60,000 homeowners enrolled in the three month trial period required by the program were converted into permanent modifications. This brings the cumulative total of permanent loan modifcations to 230,801.  The March conversions represent a 15 percent increase over the 53,000 accomplished in February and a 3.5-fold rise in permanent modifications since the first of the year. An additional 108,000 permanent modifications are pending; most are awaiting approval from the borrower.