Fifth Third Mortgage Company’s HAMP Conversion Rate
Continues to Outpace National Average
Permanent modification rate reaching 80 percent
Cincinnati – Fifth Third Mortgage Company, a subsidiary of Fifth Third Bank and the 14th largest mortgage originator in the country (Inside Mortgage Finance, Fourth Quarter 2010), continues to outpace the industry in permanent modifications in the government’s Home Affordable Modification Program (HAMP).
Of the Mortgage Company’s portfolio eligible for HAMP consideration, more than 78 percent of trial plans have been converted to permanent modifications. According to U.S. Treasury data recently released through December 2010, that percentage is nearly double the national average of 39.5 percent.
“Foreclosures and modifications continue to be an important item in today’s environment,” said Steve Alonso, executive vice president and head of Fifth Third’s Consumer Bank. “As we have said and committed to since the inception of HAMP and programs like it, Fifth Third Bank continues to work hard in converting eligible homeowners into this program and into others that help keep customers in their homes.”
The Mortgage Company uses HAMP on its Fannie Mae-and Freddie Mac-owned mortgages, per government sponsored entities’ (GSE) guidelines. 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.
In addition to utilizing the government’s HAMP program, Fifth Third continues to use its “You Have Options” program for bank-owned mortgages. Fifth Third’s “You Have Options” program is tailored, through a menu of options, to each customer’s specific financial situation. The program allows the Bank to offer flexible-term and rate adjustments to bank-owned mortgages. Along with the “You Have Options” program, Fifth Third Bank developed a proactive customer outreach program designed to build customer trust and enable solutions-driven interactions between the Bank and its customers, ranging from a centralized toll-free contact point ((866) 601-6391), to outreach events, to home visits.
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, www.53.com/bettertomorrow, explains in easy-to-understand terms the program requirements.Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $111 billion in assets and operates 15 affiliates with 1,312 full-service Banking Centers, including 102 Bank Mart® locations open seven days a week inside select grocery stores and 2,450 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, 2010, had $266 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 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.