Wells Fargo’s trial modifications, which were reported on in the most recent HAMP servicer performance review released earlier this month, showed that the number of active trials that Wells Fargo had decreased from the previous month’s report, as Treasury Department data has most recently followed servicer trends through April. However, despite the fact that there are some servicers who are seeing decreases in the number of active trial modifications, there are still permanent modifications available here in June which could be helpful to homeowners who are still facing the possibility of losing their home.
While the report for March indicated that Wells Fargo had over 15,000 active trial modifications, April’s report stated that only 12,816 active trials were currently in place for Wells Fargo, but they did also see a jump in the number of permanent home loan modifications they made, which was previously reported. What many homeowners want to know though, are there still opportunities for men and women to find the affordability they need and avoid the loss of their home in the face of what many feel to be a lackluster performance for the modification program in general.
It’s been well documented that this month’s Treasury Department reports brought a rating system which placed certain servicers in a category where they either need moderate improvement or substantial improvement, and Wells Fargo was one of the institutions that did see a call for substantial improvement, but they also appealed this rating and the potential withholdings of their HAMP incentives.
Wells Fargo disputed these findings by the Treasury Department, which also placed other major banks like J.P. Morgan Chase and Bank of America into the category where substantial improvement will be required or they may lose their modification incentives, basically on the grounds that the data which the Treasury used was not reflective of current changes that had been made within Wells Fargo, and the bank has acknowledged there are problems that they must correct.
However, many of the problems that have been faced for Wells Fargo, and other banks, center around miscalculating a homeowner’s income or having a secondary review conducted which does not agree with the servicer’s primary rejection of a homeowner for the modification program. Each bank though, has had different problems in terms of what needs to be done to better assist homeowners, yet it’s hoped that in cases where these banks have begun making changes, which may not be reflected in these Treasury reviews, it could lead to more positive results for homeowners in the future, in the form of more access to trial modifications and an easier transition from trial to permanent home loan modification payments.