Some 12 percent of eligible borrowers have been able to enter into trial loan modifications through President Obama’s Making Home Affordable program, said assistant Treasury secretary Michael Barr, speaking before a House Financial Services Committee.
A total of 360,165 people who were struggling to make payments on the mortgage were offered some sort of relief from their servicer through August, he said. Furthermore, offers have been extended on over 570,000 trial modifications.
Barr explained that more than 45 servicers are now signed up to the administration’s program, meaning that more than 85 percent of the nation’s mortgage loans are covered.
“There are clear signs that the incentives offered under the Home Affordable Modification Program are having a substantial effect,” he said.
Despite Barr’s hopeful words about the program, some other lawmakers seemed doubtful about the plan’s success.
“Waiting for banks to ‘volunteer’ to end this foreclosure crisis is a waste of time,” said Senate Majority Whip Dick Durbin, as quoted by ABC News. “Treasury’s latest report shows this approach has failed miserably.”
Of the major mortgage servicers, JP Morgan Chase was the leader in starting trial modifications on eligible home loans at 25 percent, while Citigroup started modifications on 23 percent.
Wells Fargo and Bank of America were at the lower end of the rankings at 11 percent and 7 percent respectively.
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