Fifth Third Mortgage Company Government Modification Conversion Rate Near 35 Percent
February 04 2010 - 11:42AM
PR Newswire (US)
Modification rate more than four times national average CINCINNATI,
Feb. 4 /PRNewswire/ -- When the Obama Administration introduced the
comprehensive Home Affordability and Stability Plan in March 2009,
the goal was to provide refinance and modification options for
millions of homeowners. Fifth Third Mortgage Company, a subsidiary
of Fifth Third Bank (NASDAQ:FITB) and the 18th largest mortgage
originator in the country (Inside Mortgage Finance, October 2009),
has done its part to help homeowners stay in their homes. Of the 89
percent of Fifth Third Mortgage Company's portfolio eligible for
Home Affordable Modification Program (HAMP) consideration, nearly
35 percent of trial plans started have been converted to permanent
modifications. According to U.S. Treasury data recently released
for December 2009, that percentage is more than four times the
national average of 7.4 percent. "Fifth Third Bank works hard to
provide the best for our customers," said Steve Alonso, executive
vice president of Consumer Lending and Mortgage at Fifth Third
Bank. "We have significantly increased staff in this department and
continuously work to convert customers who are eligible for the
program." The Mortgage Company uses HAMP on its Fannie Mae- and
Freddie Mac-owned mortgages, per government sponsored entities'
(GSE) mandatory participation in the program. Housing and Urban
Development (HUD) created a program similar to HAMP for the
mortgages it owns and the Bank services. Both programs require a
three-month trial modification period before being converted to
permanent status. Many portions of the Making Home Affordable
Program have raised questions from borrowers completing the
extensive paperwork necessary to participate in the program. Fifth
Third Bank has created a Web site to help borrowers navigate
through the paperwork. The site, http://www.53.com/bettertomorrow,
explains in easy-to-understand terms the program requirements. More
than a year prior to the Home Affordability and Stability Plan
launch, Fifth Third Bank recognized the need for comprehensive
assistance programs for mortgage, credit cards and other needs. The
Bank developed proactive customer outreach and assertive
modification programs to assist more borrowers experiencing
financial hardship. The program, "You Have Options," allowed the
Bank to offer flexible-term and rate concessions to bank-owned
mortgages, approximately 8 percent of Fifth Third Mortgage
Company's portfolio. The Bank has decided to continue to use the
"You Have Options" program for its bank-owned mortgages instead of
the government's HAMP program. While HAMP does have benefits to the
customer, Fifth Third's "You Have Options" program is tailored,
through a menu of options, to each customer's specific financial
situation - not just the customer's mortgage payment-to-income as
in HAMP. "'You Have Options' primary goal is to consider all debts
and reasonable monthly obligations to ensure the customer has a
surplus of monthly net cash flow for unplanned circumstances," said
Alonso. Approximately 70 percent of bank-owned modifications
continue to perform according to the updated terms. With the "You
Have Options" program, Fifth Third Bank also developed a proactive
customer outreach programs with a "we're here to help" theme
designed to build customer trust and enable solution-driven
interactions between the Bank and its customers, including: -- A
Centralized Toll-Free Contact Point - The Bank offers a centralized
number ((866) 601-6391) for all loss mitigation related customer
inquiries. If a customer would like to discuss workout options on
their first mortgage, second mortgage, auto or credit card account,
they can call one centralized number in order to connect with the
appropriate department. -- Internet Communication Options -
Customers can view different workout options, both stimulus and
non-stimulus, on the Web at http://www.53.com/ or send an e-mail
requesting assistance. -- Early Intervention Department - This
department focuses on those accounts deemed to exhibit signs of
possible default such as declining credit scores and depreciating
market prices. -- Home Visits - Fifth Third Bank employees and
third-party agencies visit homes of customers where we have had no
contact and place them on the phone with our foreclosure prevention
team. -- Travel Team / Outreach Events - The Bank sponsors and
participates in programs in communities experiencing extreme
economic hardships. Face-to-face borrower counseling is conducted
with decision makers on-site to approve workout plans. -- Community
Affairs Officers - Fifth Third Bank utilizes its Community Affairs
Officers to partner with various non-profit and government agencies
to offer loss mitigation alternatives in a non-threatening
environment. -- Fifth Third Bank Community Advisory Forum Network
(CAF) - Fifth Third Bank uses its Community Advisory Forums network
in eight metropolitan markets. This group is made up of community
leaders that advise the local Fifth Third Bank affiliate on matters
related to lending, outreach and community engagement. -- Fifth
Third Home Ownership Mobile - The Bank's eBus makes it possible for
Fifth Third to deliver loss-mitigation assistance to the doorsteps
of low-and moderate-income neighborhoods while providing other
community based benefits (e.g. technology education). Fifth Third
Bancorp is a diversified financial services company headquartered
in Cincinnati, Ohio. The Company has $113 billion in assets,
operates 16 affiliates with 1,309 full-service Banking Centers,
including 103 Bank Mart® locations open seven days a week inside
select grocery stores and 2,358 ATMs in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia,
Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third
operates four main businesses: Commercial Banking, Branch Banking,
Consumer Lending, and Investment Advisors. Fifth Third also has a
49% interest in Fifth Third Processing Solutions, LLC. Fifth Third
is among the largest money managers in the Midwest and, as of
December 31, 2009, has $187 billion in assets under care, of which
it managed $25 billion for individuals, corporations and
not-for-profit organizations. Investor information and press
releases can be viewed at http://www.53.com/. Fifth Third's common
stock is traded on the NASDAQ® National Global Select Market under
the symbol "FITB." Member FDIC. Equal Housing Lender. DATASOURCE:
Fifth Third Bancorp CONTACT: Whitney Ellis of Fifth Third Bancorp,
+1-513-534-6791 Web Site: http://www.53.com/
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