Recently, the Treasury Department began reporting on what percentage of eligible loans have been modified by the big banks. The belief is that this will spur the banks to modify more loans so they won’t be seen as “doing” and “committing” less than their peers.
Overall improvement has already been seen with 12% of eligibles being placed into trial modifications.
Bank of America has enrolled about 7% of those eligible. JPMorgan Chase has enrolled 25%.
David Stevens, Assistant Secretary for Housing and FHA Commissioner at the U.S. Department of Housing and Urban Development stated, “Nobody wants to be a low performer on that score card.”
We shall see the outcome.
Read more about the program at Making Home Affordable.
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