Treasury releases February HAMP numbers

A recent report from the U.S. Department of the Treasury shows that the government’s Home Affordable Modification Program continues to create permanent home loan modifications.

Through February, a little more than 170,000 trial loan modifications were granted permanent status through HAMP. More than 91,000 were waiting the approval of homeowners.

"As of the end of the month, more than one million borrowers were receiving a median savings of $500 each month – a 36 percent median monthly payment decrease," the Treasury said.

The total number of trial-period home loan modifications offered through HAMP was more than 1.35 million through the end of the month. However, the program has received criticism for the slow rate at which permanent modifications have been turned over.

In fact, HAMP has been the focus of complaint since it was first implemented last year. Along with the problem of getting permanent modifications cemented, both loan servicers and homeowners have expressed confusion over the process and forms associated with the program.

In order to try and avail this, the federal government has put the collection of forms needed on the internet and has tried to work with lenders to speed up the conversion rate.