Fifth Third Mortgage Company Government Modification Conversion Rate at 53 Percent

CINCINNATI, April 28 /PRNewswire/ -- As percentages for permanent modifications in the government's Making Home Affordable Program (HAMP) have increased to double digits, Fifth Third Mortgage Company is continuing to outpace the national average.

Of the 89 percent of Fifth Third Mortgage Company's portfolio eligible for HAMP consideration, 53 percent of trial plans started have been converted to permanent modifications. According to U.S. Treasury data recently released for March (www.ustreas.gov/press/releases/tg641.htm), that percentage is more than two-and-a-half times the national average of 19.8 percent.

"The efforts to provide what is best for our customers truly show in our high modification conversion rate," said Steve Alonso, executive vice president of Consumer Lending and Mortgage at Fifth Third Bank. "We continuously work to convert customers eligible for the program."

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.

The Bank continues to use its "You Have Options" program for bank-owned mortgages instead of the government's HAMP program. While HAMP does have benefits to the customer, Fifth Third's "You Have Options" program is tailored, through a menu of options, to each customer's specific financial situation – not just the customer's mortgage payment-to-income as in GSE and HUD modification programs. The program allows the Bank to offer flexible-term and rate concessions 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 (Nasdaq: FITB) is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $113 billion in assets, operates 16 affiliates with 1,309 full-service Banking Centers, including 102 Bank Mart® locations open seven days a week inside select grocery stores and 2,368 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 March 31, 2010, had $190 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.  

SOURCE Fifth Third Bancorp

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