If you get a loan modification through Wells Fargo, do not count on it being part of the federal government’s Home Affordable Modification Program (HAMP). In fact, you can bet against it with very favorable odds. Fully 85 percent of Wells Fargo loan modifications are proprietary modifications, meaning that they are performed under the lender’s own loan modification programs and on Wells Fargo’s terms[1]. Perhaps not surprisingly, the federal government cited the bank just last week for shortcomings in its HAMP performance and cut off payment of incentives to the lender in an attempt to increase the bank’s participation levels. Equally unsurprising: Wells Fargo fired back and disputed both the settlement and the withholding of payments.
The Treasury report paints “an unfairly negative picture” of Wells Fargo, said bank officials in a response to the report, adding that much of the lender’s HAMP issues stem from HAMP failures, not Wells Fargo problems[2].
Given HAMP’s incredibly poor performance, do you blame Wells Fargo for taking matters – and modifications – into its own hands? Does it matter who is really handling the modifications as long as they are happening and sustainable to lender and borrower?
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[1] http://www.mortgageloan.com/85-wells-fargo-mods-are-non-hamp-8736
[2] http://blogs.wsj.com/developments/2011/06/10/wells-fargo-disputes-treasury-sanctions-on-hamp/?mod=google_news_blog
I say good job Wells Fargo! They just went up a notch in my book. HAMP has failed in so many ways it is nice to see someone has the guts to stand up to the U.S. gov. on issues that need addressing and changed.
This is an interesting spin on this. Took me 2.5 years, but I did get a HAMP-like mod directly from Wells Fargo; not HAMP and not for 30 years, but it was something given that lenders do not want to give mods to anyone at all. I actually think mine was an accident — as in they didn’t want to honor it — but I have some breathing room to figure out what next! This is a very sad time in our country.
Good move. Now address Equator a little and they will be better.
I don’t believe Wells Fargo ever intended to modify any loans and help the American families struggling due to illness or job loss, but it didn’t stop them from taking the TARP money. I believe they should repay most of the TARP money they received and the government incentives should match their willingness to modify loans. It’s the taxpayers money and it’s the taxpayer’s that they are screwing over so give us back our damn money you thieves!!