For weeks consumer advocates at watchdog organization listened to and read reports of how well Saxon Mortgage modified mortgages. Many of those reports were false or misleading.
Sources such as subprime blogs echoed glowing reports from news sources. Much of the data was wrong.
Saxon Mortgage permanently modifed only 42 mortgages. That is correct — forty-two (42).
According to Mortgage Orb, which calls itself “Required content for real estate finance professionals”, GMAC Mortgage performed 7,111 permanent modifications – more than any other servicer.
Comparing 7,111 for GMAC to 42 for Saxon Mortgage we rest our case.
Keep in mind that Saxon Mortgage acquired many risky mortgages from failed Kansas City lender Novastar.
Why did news sources and blogs incorrectly report Saxon Mortgage as the best mortgage servicer for modifying mortgages? Read this statement:
Saxon Mortgage Services had the highest percentage of active trial mods plus permanent mods as a share of eligible 60+ day delinquencies – 44%.
This statement means Saxon Mortgage has more risky past-due mortgages. Nothing more, nothing less. Complaints shows Saxon is in a state of confusion with lost paperwork and multiple requests for the same information. See our complaints category for over 100 examples.
Having set the record straight, these are the real figures. The come from December’s HAMP servicer progress report was the first issued by the Treasury:
• GMAC Mortgage performed 7,111 permanent modifications.
• JPMorgan Chase permanently modified 4,302 mortgages
• Ocwen permanently modified 4,252 mortgages
• Aurora permanently modified 3,622 mortgages
• Wells Fargo permanently modified 3,537 mortgages
• Bank of America permanently modified 98 mortgages
• Saxon Mortgage permanently modified 42 mortgages
(SOURCE: U.S. Treasury Department)
For those who want to dispute the data, or wish to defend their original incorrect position, get your copy of the Treasury Department PDF file here first. The facts are clear.
The Treasury HAMP Modification Activity by Servicer report also shows the total number of risky mortgages by servicer.
Saxon Mortgage Services, Inc., signed on to the HAMP effort in April 2008. Other financial institutions did not sign on until as late as July and August and still managed to modify more mortgages than Saxon.
Since the first days of December advocates at Saxon Watch disputed reports such as this one seen in Google News:
Home Loan Modification by Saxon Mortgage Services Tops the List
(redacted) – Dec 2, 2009
We have recently learned that Saxon Mortgage Services has done the best with the home loan modification process.
While these articles point to Active Trials plus Permanents as a Share of Eligible 60+ Day Delinquencies, and correctly state that Saxon and CitiMortgage were leaders in this category there is no upside for home owners.
For those in trouble with their home mortgage only permanent modifications deliver permanent relief.
About a quarter of borrowers in trial modifications are already in default again on their mortgages, according to the Treasury. Therefore, if Saxon Mortgage has more risky loans — 80,309 — then Saxon is more likely to have more defaults and foreclosures.