The number of mortgage servicers under contract to perform government-sanctioned loan modifications has grown to 38. According to the administration, 85 percent of the nation’s mortgages are now covered under its Making Home Affordable Program (HAMP). Among the new additions is American Home Mortgage Servicing. The Treasury Department has allocated nearly $1.3 billion in incentive payments for the loans American Home modifies, to be paid out to the servicer, its borrowers, and mortgage investors for successful workouts. The latest to be added to the servicer pool are JPMorgan Chase and its subsidiary EMC Mortgage, although the bank’s Chase Home Mortgage business has been part of the program since April 13. Others new to the list include First Bank in St. Louis; Mortgage Center LLC in Southfield, Michigan; Chicago’s ShoreBank; Farmers State Bank, based in West Salem, Ohio; Pittsburgh’s PNC Bank; and MorEquity, Inc. in Indiana.

A number of credit unions have also signed on to the program — Purdue Employees Federal Credit Union and Mission Federal Credit Union are the latest to do so. The nation’s largest lenders have all agreed to provide mortgage modifications under the federal guidelines, as well as specialty subprime servicer Ocwen Financial and a host of other well-known names in the field. The full list of contracted servicers can be found on the Making Home Affordable Web site. On Tuesday, the Treasury Department disclosed the number of program-eligible loans and the number of trial modifications initiated so far for each HAMP servicer. JPMorgan Chase and its subsidiaries are leading the pack, with more than a third of the 230,000 trial mods now underway. Saxon Mortgage takes top seed when looking at the number of trials started compared to its pool of eligible loans. Twenty-five percent of its troubled mortgages are already in the trial phase.