Failed loan modification process and results

By Neil Crane of The Law Offices of Neil Crane LLC posted in Mortgage Modification on Wednesday, November 18, 2015.

The Inspector General's recent report on the government's HAMP program showed universally terrible results for homeowners. Of all HAMP Applications in Connecticut, 70% were denied according to the July 29, 2015 Inspector General's Report on TARP results.

In summary:


  • CitiMortgage denied 90% of all HAMP applications
  • JP Morgan Chase denied 80% of all applications
  • Bank of America denied 80% of all applications
  • Ocwen Servicing denied more than 70% of all applications.


Widespread bank incompetence and excessive delay are the fundamental causes of the denial of over 75% of all HAMP applications, as well as the eventual failure of 23% of all trial modifications and 27% of all final modifications.

Slow processing and continuing delays create huge back payment arrearages that ultimately make even successful modifications unaffordable as interest rates rise, fees accrue and back costs escalate.

The Treasury Department has failed to force banks and servicers to commit the resources needed to properly and successfully process mortgage modification applications. Despite widely documented abuses by the Treasury itself, no TARP incentive payments have ever been permanently withheld from any servicer; i.e., servicers get 100% of the money and homeowners get 80% of the denials.

The banks are again left unregulated and unaccountable.

To learn more about this subject and ways to save your home and modification, call the experienced and knowledgeable attorneys at the Law Offices of Neil Crane. We can be reached at 203-230-2233 or toll free at 1-888-249-3027. You can also fill out our online Contact Form for a prompt response from an attorney.