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Monday, October 17, 2011

Rating Wells Fargo Bank's Mortgage Loan Modification Performance

Rating Wells Fargo Bank's Mortgage Loan Modification Performance


 Wells Fargo Bank's performance in assisting distressed homeowners was ranked as average among large mortgage loan servicers, according to the Federal Government's most recent report. The Making Homes Affordable ("MHA") Final Report for the second quarter of 2011 states that Wells's performance is in need of "moderate" improvement. Let's take a closer look at how Wells performed in five (5) key categories, with all the information below based on conclusions by the Federal Government.


1.  Did Wells effectively follow guidelines for identifying and contacting homeowners who may be eligible for the Home Affordable Modification Program ("HAMP")?  No. Wells did not meet the required standards, with moderate improvement needed.


2.  Did Wells effectively follow guidelines for evaluating and assisting homeowners?  Yes. Wells met the required standards. However, minor improvement may be indicated.


3.  Did Wells effectively follow guidelines for general program management, program data reporting, and program compliance?  Yes. Wells met the required standards. However, minor improvement may be indicated.


4.  How often did Wells make errors greater than 5% in calculating the homeowner applicant's income (a crucial factor in determining eligibility for a HAMP mortgage loan modification)?  This occurred 4.4% of the time, with moderate improvement needed.


5.  How often did the Federal Government disagree with Wells as to whether a homeowner was eligible for a permanent HAMP mortgage loan modification?  The Government disagreed with Wells on this issue only 0.4% of the time and concluded that Wells was performing adequately by this measurement. Additionally, 1.3% of the time, the Government was unable to determine whether Wells made the correct determination on a homeowner’s eligibility.


Conclusion: President Obama's administration has concluded that Wells requires moderate improvement in its performance as a mortgage loan servicer participating in HAMP, and that the Federal Government will not withhold incentives until improvement is shown.


McGrath & Spielberger provides legal services in an attempt to assist borrowers seeking mortgage loan modifications or other mortgage - related relief.