| Progress Report on Loan Modification Program | | | | that proves they are legitimately entitled to a |
| Nearly one year old, the federal government's | | | | modified loan. You would think that this wouldn't |
| loan modification efforts continue to languish. Visit | | | | be too difficult, but to-date, only 30,000 |
| Here Now | | | | temporary modifications have been converted. |
| In an attempt to galvanize the program, it has | | | | |
| taken to releasing updates and report cards with | | | | Naturally, there is no shortage of blame to go |
| increasing frequency. Unfortunately, these too | | | | around. The government is blamed for not |
| appear to be having little success, which is why I | | | | spurring more trial modifications (it originally |
| have taken it upon myself to write my own | | | | estimated the pool of eligible borrowers at four to |
| progress report, for your viewing pleasure. | | | | seven million). Lenders are blamed both for taking |
| According to the latest figures, over 650,000 | | | | too long and for not granting increased leniency to |
| loans have entered the trial modification stage, | | | | borrowers, some of which are still seeing an |
| during which point they must demonstrate their | | | | increase in their monthly payments following |
| sincerity, eligibility, and capability, before they can | | | | modifications. Lenders counter that borrowers are |
| be converted to permanent modifications. | | | | also to blame, both for failing to make the |
| Specifically, they must make 3 payments under | | | | required 3 payments under the trial modification |
| the new terms and submit certain documentation, | | | | and for not submitting the necessary paperwork. |