Only 4% of mortgage modifications permanent

December 11, 2009

CHICAGO - Just 4 percent of delinquent borrowers who started trial mortgage modifications under the Obama administration's housing plan have had those more affordable loan terms made permanent, the Treasury Department said Thursday. The monthly progress report on the government's Making Home Affordable modification program shows that mortgage servicers had started 759,058 trial periods with consumers nationally by the end of November. More than 697,000 of them were considered active trial modifications and 31,382 were permanent loan adjustments. This is the first month that the Treasury Department has required mortgage servicers to break out the number of permanent modifications, part of its effort at transparency as it pressures lenders to move more borrowers into permanently affordable loan terms. The data shows while the number of trial modifications is increasing, permanent conversions to more affordable loan terms is running far behind.

- Chicago Tribune

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