The Home Affordable Modification Program has provided a number of struggling homeowners with financial relief in recent years, but a report indicates that the number of permanent modification completed fell considerably during the first quarter this year.
According to a report from the Department of the Treasury, during the first three month of 2012, servicers completed an estimated 60,196 modifications through HAMP. Mortgage records indicate this is nearly one-third fewer than the number performed a year ago. During the first quarter of 2011, approximately 90,536 loans were restructured through HAMP.
However, despite the decline a number of industry experts anticipate expanded guidelines for the program to make HAMP more accessible to underwater homeowners in the coming months.
"As the expanded program criteria becomes available this summer, we expect additional borrowers to become eligible for the program," said a spokesperson from the Department of the Treasury.
The overall performance of HAMP has fallen short of preliminary expectations since it was launched in early 2009. By now, experts say between 3 million and 4 million struggling borrowers should have been assisted. However, it's believed that so far, just shy of 1 million homeowners have had their mortgages restructured through the program so far.