A few months ago Morgan Stanley said Saxon Mortgage would hire “up to thirty people” to help with Saxon’s backlog. Somehow Saxon claims to lead the field with 25 percent of mortgages modified. Something is wrong with those numbers.
Citigroup today unveiled data on its efforts to help people avoid foreclosure. Bloomberg reports the company’s mortgage business has hired 1,400 employees this year to help modify delinquent loans.
Earlier this month federal officials released a report on how loan servicers have been performing under the Obama administration’s mortgage modification plan, and Citi ranked in the upper middle, with 15% of its eligible 60-day late payers starting a loan mod. That was better than Wells Fargo (6%) and Bank of America (4%), but lower than JPMorgan (20%) and Saxon (25%), which had the highest percentage. See the chart (it gets larger with each click) to compare servicers.
Reports on this website, which are submitted by real people, do not support the glowing reports Saxon receives elsewhere.
It is easy to lower the monthly payment, even if a company adds additional fees to the back end of a loan. The problem is the amount owed on the home far exceeds today’s value.
Look for Saxon to collect money from the government for modifying loans when the homeowner does not know about it. Something is terribly wrong here, and the statistics do not make sense.
For instance, a woman in Florida sent this to us today: “I called Saxon mortgage to ask for help with my high interest rate and mortgage payment. They were very cold and would not work with me at all. I asked them if they wanted to work with me or let me lose the house.”