Geitner Require Lenders to Make Progress on Modifications
Tim Geitnner has written the attached letter to the 25 servicers who are participating in HAMP – Home Afffordable Mortgage Program – such as CitiMortgage and Wells Fargo Bank. These servicers receive incentives for doing modifications designed under the Obama Administration’s Making Homes Affordable (MHA) program.
The letter comes after a mid-June cap adjustment on the Treasury’s TARP fund investments to servicers based on actual participation in the modification program. The Treasury reduced the total amount that CitiMortgage can receive and distribute to borrowers for modifications by more than $991m to a total $1.08bn, as a reflection of actual funds usage. Wells Fargo’s total incentive payment amount received more than $462m in reductions to a revised cap of $2.41bn.
The letter illustrates that the government is pressuring lenders to streamline the process. This is encouraging news for those who need modifications.