Making Home Affordable Modification Finally Top 600,000

The number of permanent loan modifications started under the Home Affordable Modification Program (HAMP) finally exceeded 600,000 in January, but only 539,493 remain active, according to the latest report released today from the Treasury.

During the month, 27,957 permanent modifications were started, a decline from the 30,030 started in December as the program continues to loss steam.

Overall, 68,114 permanent loan modifications and 740,240 trial modifications have been canceled since HAMP got underway in late 2009.

But the conversion rate has improved significantly since June 1, when loan servicers were required to gather documentation from borrowers upfront.

“Servicers average a 61% conversion rate for all eligible trials started with verified documentation on or after June 1, 2010,” the report said.

“For trial modifications begun before June 1, the conversion rate averages 41%.”

A recent report noted that just one in four borrowers survive HAMP, and the Congressional Oversight Panel believes only 700,000 foreclosures will be prevented under the program.