Obama Mortgage Rescue: Only 9% Getting Help
08/05/09
First report by Obama administration details slow, uneven performance by firms implementing $75 billion mortgage mod- ification program.
The Obama administration's first progress report on it's foreclosure preventiion plan confirms it is off to a slow start. Just 9% of delinquent borrowers are in trial modifications so far, the Treasury Depart- ment said Tuesday. That translates into 235,247 loans that were at least two months delinquent.
Under fire for the program's rocky start, the Obama administration says it is on pace to help up to four million homeowners over the next three years. The initiative was announced in February and the first institutions to join began accepting applications in April.
Tuesday's report comes a week after the administration called servicers to Washington, D.C., to discuss ramping up the program's implementation after hearing a flood of complaints from borrowers. Officials want to see 500,000 loan modifications underway by Nov. 1.
By releasing the servicer's progress reports, the administration is hoping to hold institutions responsible for their performance. The monthly reports will allow the public to see which institutions are lagging in implementing the plan.
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