According to the San Francisco Business times quoting the Obama administration, more than 500,000 troubled home loans have entered trial modification programs.
Federal officials recently stepped up pressure to modify troubled loans after criticism during the summer that banks and other loan servicers were dragging their feet adjusting loan terms for borrowers in danger of default. The government had given servicers a deadline of Nov. 1 to get 500,000 eligible borrowers into such programs, where payments are reduced to not exceed 31 percent of the borrower’s pre-tax income.
An estimated 16 percent of troubled borrowers (defined as those at least 60 days delinquent) have been placed into trial modifications. Here are some of the stats on mods by banks in the state in CA. Citigroup leads the mods list with a third of all loan mods.
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