New service will keep track of loan modification documents online

A new service aimed at smoothing out the loan modification process is allowing homeowners seeking permanent modifications to upload their important documents online, a seemingly small step that could make a big difference in a system often foiled by lost or incomplete paperwork. LoanPort, launched for testing in November by mortgage industry group Hope Now, is intended to eliminate the “‘he said, she said’ element with lost documents,” according to Faith Schwartz, the group’s executive director. While 680,000 borrowers have received temporary loan modifications through the federal Making Home Affordable program, just 31,000 of those have been able to obtain permanent fixes. That gap is believed by many to be driven by problems with keeping track of documentation on both the borrower and servicer end of the process. So far, LoanPort covers about 25 percent of the mortgage market, according to Schwartz, including JPMorgan Chase, GMAC Financial Services and four other servicers in several metropolitan areas, including New York City. Customers must utilize a free Hope Now housing counselor in order to take advantage of the portal. [NYT]