Modifying Loans works with Wells Fargo Home Mortgage
On April 14, 2010, Wells Fargo Home Mortgage announced the completion of over 500,000 modifications and active trials for home mortgages through its modification program and the government's Home Affordable Modification Program (HAMP). Of that number, the company had completed nearly 380,000 non-HAMP modifications and trials since January 2009. According to the announcement, Wells Fargo had over 140,000 HAMP-active home mortgage modifications under consideration at the end of March 2010.
Based on the report, Wells Fargo has modified three home mortgages for every owner-occupied foreclosure sale occurring with the company between October 2009 and March 2010. In the past year, fewer than 2% of owner-occupied homes secured by a loan actually proceeded to the point of a foreclosure sale. The company's records also indicated over 90% of home mortgage customers with the bank remained current on their loans.
Co-president Mike Heid credited HAMP as the starting point for Wells Fargo's efforts to work with customers experiencing home mortgage problems. However, according to the mortgage lender's ongoing analysis, approximately 30% of customers seeking modification under HAMP will not qualify based on a review of the documents clients provide for consideration. Heid stated the company had "been very successful in finding other workout options when a customer is not eligible for HAMP."
As part of the company's efforts to assist home mortgage customers in financial difficulty, Wells Fargo implemented its Home Affordable Foreclosure Alternatives (HAFA) program on April 5, 2010. The program provides incentives for alternative solutions like short-sales instead of foreclosing on a property for individuals who do not meet the requirements for modifications. In order to handle the existing and new programs for home mortgage modification and alternative solutions, Wells Fargo has added over 10,000 employees since 2009.