See these quotes from a recent LA Times article:
In its first report on the Obama administration’s efforts to prod lenders to help as many as 4 million homeowners by reducing their mortgage payments, the Treasury Department said just 9% of eligible loans had been changed.
Loans were modified even less often by the two mega-banks that dominate the mortgage market: Wells Fargo & Co. reduced payments for only 6% of its eligible home loans under the government’s program, and Bank of America Corp. modified just 4%.
Sooner or later the federal government is going to have to use stronger tactics with banks than the pretty please approach if the pace of loan modifications is ever going to pick up significantly. However that kind of government intervention is a potentially dangerous precedent to set so who knows how this will pan out.
August 5th, 2009 at 2:09 pm
My request to ASC (America’s Servicing Co) for a loan modification last spring was rewarded, after several weeks of getting every conceivable document they asked for and faxing everything plus the kitchen sink to them) was not only a “NO,” they also charged me a $95 FEE for even ASKING for a loan modification.