DES MOINES, Iowa - May 17, 2010
Wells Fargo & Co. (NYSE:WFC) said today that as of April 30, through its own modification programs and the federal government’s Home Affordable Modification Program (HAMP), the company had 505,059 active trial and completed modifications in place since the beginning of 2009. Non-HAMP trial and completed modifications put in place since the beginning of 2009 made up more than 390,000 of that total, while HAMP active trial and completed modifications totaled 111,416. The HAMP number includes 36,094 permanent modifications.
Wells Fargo’s delinquency and foreclosure rates in the fourth quarter of 2009 were three-fourths that of the industry and more than 91 percent of Wells Fargo’s mortgage customers remained current on their loan payments, according to the March 5 edition of Inside Mortgage Finance. In addition, fewer than 2 percent of the loans secured by owner-occupied homes and serviced by the company proceeded to a foreclosure sale in the last 12 months and Wells Fargo initiated or completed three modifications for every one foreclosure sale on owner-occupied properties from October 2009 through April 2010.
“We continue our efforts to find options that will allow mortgage customers facing financial hardships to stay in their homes through one of our own modification programs or through HAMP,” said Wells Fargo Home Mortgage Co-President Mike Heid. “Our ongoing experience reinforces the fact that HAMP is an excellent tool that can benefit many homeowners dealing with payment challenges, but having a full range of options to address different customer circumstances is crucial to helping all of the borrowers who truly need assistance.”
Wells Fargo has previously reported expectations for HAMP outcomes for customers who make all three of their trial payments and continues to see the following break out:
|Projected HAMP Outcomes|
|Borrowers who have made three HAMP trial payments as of 4/30/10||146,000|
|Completed modifications expected of those who have made three payments||50%|
|Not eligible for HAMP after documents have been reviewed||30%|
|Some required documents not provided||10%|
|No required documents provided||10%|
Wells Fargo continues to expand its face-to-face customer contact initiatives to reach more struggling borrowers. Since last fall the company has sponsored seven large-scale Home Preservation Workshops for its customers in Atlanta; Baltimore; Chicago; Phoenix; St. Paul, Minn.; Los Angeles; and Oakland, Calif. At these events, company representatives have met with nearly 10,500 customers and many Wells Fargo Home Mortgage customers received modifications on the spot or within a short period after the event. Wells Fargo expects to conduct one or more of these events per month going forward. Its next workshop will be held in Miami, May 21 – May 23; Minneapolis, June 5 – June 6; and Las Vegas July 9 – July 11. In addition, the company continues to conduct one-on-one meetings with customers invited to our Home Preservation Centers in 27 hard-hit markets. The company also has participated in more than 300 industry-led local outreach events focused on delivering assistance to struggling borrowers since the beginning of 2009.
To support implementation of existing and new home preservation initiatives, Wells Fargo has added nearly 11,000 home retention staff since the beginning of 2009 and now has about 18,200 U.S.-based staff focused on these efforts.
About Wells Fargo
Wells Fargo Home Mortgage is the nation’s leading mortgage lender and services one of every six mortgage loans in the nation. A division of Wells Fargo Bank, N.A., it has a national presence in mortgage stores and banking stores, and also serves the home financing needs of customers nationwide through its call centers, Internet presence and third-party production channels.
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 10,000 stores and 12,000 ATMs and the Internet (wellsfargo.com and wachovia.com) across North America and internationally.