Too Little, Too Late

The administration recently released its first monthly report detailing the progress to date of the Making Home Affordable (MHA) loan modification program. The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance.
This comprehensive plan to stabilize the U.S. housing market was announced in February. Two weeks later on March 4, detailed program guidelines were published and authorized servicers were supposed to begin modifications immediately. MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program.
Some progress has been made, but not enough, considering the $50 billion dollars set aside for this program. As of July, only 9 percent of eligible borrowers have seen their mortgage payments reduced with modified loans. 10 lenders have not reduced a single mortgage, and the lenders who received billions in federal bailout money...B of A and Wells Fargo...have lagged far behind government expectations. Bank of America modified only 4 percent of eligible loans, Wells Fargo 6 percent, and Wachovia (which was taken over by Wells Fargo) just 2 percent.
With 1.5 million homeowners receiving at least one foreclosure-related notice in the first half of this year, it's time for these banks to speed things up.