Mortgage Companies Defend Themselves regarding Obamas Plan

Reports have come out on how the leading Mortgage Companies have been performing with The Obama Administrations, Making Home Affordable Plan.

Mortgage Companies have come out on the defense as to why they haven’t done more volume.

The report shows that the following companies are among the worst performers are Bank of America and Wells Fargo & Co.  while JPMorgan Chase & Co were among the highest in helping their customers that were eligible for the plan. The plan allows eligible homeowners are those who were sixty days or more delinquent and fall into a set parameters to get a trial modification. A full modification requires that the borrower stay current for at least three months before a permanent modification can be completed.

Ocwen Financial Corps, President Ron Faris, came out on the defense and contended that the numbers were deceiving. He claims that some servicers are just verbally collecting income information and sending them an offer right away. Later falling up with the borrower to obtain the required information and thus this method of data collection would eventually result in a higher number of modifications performed initially. He claims that his company requires the borrower to submit all the necessary documentation prior to performing the modification.  He believes that Ocwens approach will lead to more modifications actually being completed.

Wells Fargo & Co, Co-President Mike Heid confirmed that Wells intentionally waiting for the Obama Administration to release more detailed information on the program guidelines before diving in. According to records Wells has helped six percent of its potentially eligible homeowners. Heid contends that Wells did not want to put borrowers into a trail modification and later re-underwrite the loan. Wells Fargo & Co , like Ocwen took the gather the information first approach. Heid believed that now with more experience until the company’s belt strap that they would be less restrictive on the gathering of mortgage documentation.

Bank of America Home Loans, President Barbara Desoer, had earlier in the week confirmed that Bank of America had assisted four percent of its eligible borrowers and had performed modifications outside of the parameters of The Obama Administrations Plan. In addition, they had halted foreclosure sales where borrowers could qualify under the plan.