An update on the Administration’s nationwide campaign to help borrowers in the trial phase of their modified mortgages convert to permanent under the Home Affordable Modification Program (HAMP) was released by the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today.

The update covering December data shows that there has been a significant increase in the rate at which borrowers are being approved for permanent modifications. As of December, more than 110,000 permanent modifications have been approved since the start of the program, including 66,000 that borrowers have accepted and 46,000 awaiting only the borrower's signature.

Under HAMP, more than 850,000 homeowners have had a median payment reduction exceeding $500. HUD Senior Advisor for Mortgage Finance William Apgar echoed this commitment: "HUD will continue to work with our Administration partners and utilize our broad network of housing counseling agencies to increase the number of borrowers receiving sustainable and affordable modifications under HAMP."

The Administration has taken a number of steps to help companies that service mortgages in increasing the number of converted modified loans to give eligible homeowners the opportunity to participate in HAMP.

Over the past month, Administration representatives were on-site in mortgage servicer offices to ensure that servicers put in more efforts to deliver decisions to borrowers in trial modifications who have submitted all of their documents and/or to obtain any missing documents from borrowers. The Administration also implemented a temporary review period to ensure that all borrowers are being fairly evaluated for the program. The temporary review period extends until January 31, 2010.

HAMP was designed to offer to 3-4 million homeowners reduced monthly mortgage payments that are affordable and sustainable over the long-term through 2012. At present, several million homeowners are estimated to be eligible for the program and more than 1 million have already received modification offers.

At this rate, the program is on track to meet the goals that President Obama laid out in announcing the Homeowner Affordability and Stability Plan. In just a year, the plan has launched critical initiatives such as keeping interest rates low by providing support for Fannie Mae and Freddie Mac and facilitating mortgage affordability across the market, increased flexibilities in refinancing mortgages to provide homeowners with lower monthly payments, tax credits to support development of affordable housing, and support to state and local housing finance agencies.