Reports that were released in the early parts of June stated that J.P. Morgan Chase saw an increase in the number of active permanent modifications that were reported from March to April of this year, but despite the Treasury Department releasing positive data on many servicers in this respect, there were those, like Chase, that did receive an unfavorable rating in terms of their participation in the modification program. While this has led many homeowners to wonder why some banks have seen these low reviews despite the fact that more permanent modifications are being made, but there are some homeowners who are in fact glad that servicers received a low rating as they hope it will bring about change in the foreclosure prevention program.
There has been no perfect participant in the federal Making Home Affordable Program, and J.P. Morgan Chase has had its fair share of complaints by homeowners, which is something that many of the major financial institutions, particularly these top banks, have all had to contend with over the past months. Despite the fact that J.P. Morgan Chase saw an increase in the number of active modifications, which rose from 75,973 in March to 79,516 in April, homeowners are still waging complaints against this particular servicer for a variety of reasons, and sadly, the problems that particular servicers have seen seem to be universal within the program in many cases.
Chase was rated by this new system and was said to be in a position where substantial improvement was needed for certain incentives to be restored, but what problems are being faced by homeowners are usually those dealing with either speaking to representatives, transitioning from a trial phase to a permanent home loan modification plan, getting paperwork issues sorted out, or simply being able to afford a home loan modification. While there are some complaints that homeowners have had after receiving a trial modification, like those who have still had a difficult time making payments when factors like a second home loan was an issue, some homeowners have seen success and a relatively easy transition through HAMP.
It’s because of what many believe to be inconsistencies in the performance of many servicers or deficiencies in the program in general that these reviews have been conducted and ratings are being offered so that banks who may be lacking can make improvements in areas where the shortcomings have been evident. While it needs to be understood that no bank is perfect and the modification program in general has had its fair share of complaints as well, homeowners who are facing issues related to lost paperwork, calculation errors, or simple problems related to the evaluation are all, with a variety of financial servicers, calling for change within the modification initiative.
For J.P. Morgan Chase permanent modifications have risen over the past months, but this new rating system which is now calling for improvement on the part of not only Chase but other major banks as well, will likely require that adjustments be made and hopefully this will lead to not only more positive results on an individual level for these banks but will elevate the efficiency and helpfulness of HAMP overall.