Mortgage Modification Not Working as Planned

As of July, only approximately 9 percent of eligible borrowers had seen their mortgage payments reduced with modification. Many banks that have received federal bailout money have yet to change a single mortgage, according to a report by the Government Accountability Office report on the Home Affordable Modification Program.

The GAO report found specific problems with the Home Affordable Modification Program. For example, Treasury has not fully developed all its subprograms or promulgated regulations for conducting the modification, and the initial design of the program limits its potential help to borrowers. More importantly, Treasury has developed but has not finalized an oversight structure for the modification program and is not systematically evaluating servicers’ capacity during program admission.
Read more about Obama’s mortgage modification program…