Wells Fargo & Co. on Wednesday became the second mortgage servicer to agree to a government plan to modify the second liens of borrowers who have received a modification of their first mortgage.
Bank of America Corp. signed up for the plan, known as 2MP, in January.
"When a customer has reduced payments, it frees up the cash flow to benefit everybody," Kevin Moss, an executive vice president of Wells Fargo's home equity group, said in an interview. "This program will simplify the process."
First-lien servicers participating in the plan are required to notify second-lien holders that a first lien has been modified through the Home Affordable Modification program.
The company said at the end of February that it had modified second liens for 180,000 customers and first liens held by 500,000 customers through various internal and government programs, including Hamp.