How Saxon Mortgage kept HAMP funds

HAMP was started in February 2009 by the Treasury Department and the Federal Housing Finance Agency after the foreclosure crisis. Under the plan, at least $75 billion was directed to participating mortgage-servicing companies to help financially distressed mortgage-holders modify their mortgages.

Reuters reported that Saxon received a $634 million commitment of HAMP funds, of which $65.8 million has been received, the plaintiffs claim.

Saxon has spent $12.25 million so far to subsidize homeowners, according to a June 30 report by ProPublica, a non-profit Web site for investigative journalism. About $29 million of Saxon’s total HAMP funds went to the company and $24 million benefited investors, ProPublica said.