May Scorecard With New Assessments Shows Improvements But Still Weak

Yesterday, the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury released the May Obama Administration Housing Scorecard, which measures the progress of federal foreclosure prevention efforts including the new assessments of the 10 largest mortgage services involved in the administration's Making Home Affordable Program.

The new assessments will be used to show service providers where they can improve and how to effectively reach eligible homeowners, while providing transparent reports to the public on the performance of the service providers in the program.

Servicers will be assessed on how well they identify, contact, evaluate and assist homeowners, as well as their reporting, management, and governance of the program.

The assessments showed Bank of America, JPMorgan Chase, Ocwen Loan Servicing, LLC, and Wells Fargo to be in need of substantial improvements. The Treasury Department said it will withhold financial incentives for all but Ocwen Loan Servicing.

While the housing market remains fragile after months of decline, more than 100,000 Phoenix, Arizona, homes were reported to have received mortgage modifications directly through the administration to help avoid foreclosure, according to the Housing Scorecard Regional Spotlight.  

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