|The Mortgage Relief program initiated by Obama administration has helped only 4 percent of borrowers so far, according to a report released by the US Treasury Department revealed on Thursday. This is because of the weak performance shown by the big lenders in completing mortgage modifications for the borrowers who have signed up by the end of November.
Bank of America, the largest lender of the country, shows the worst performance with only 98 successful modifications out of the 160,000 applications. GMAC with a figure of 7,100 succeeds in completing the most modifications by any single lender of the nation.
The mortgage relief program which was launched in March this year has received over 760,000 applications for modifications. Out of this figure only a little over 31,000 homeowners have seen their applications get through the modification process so far.
If modifications are carried out in such a slow pace, the long-term target to bringing the benefit to 4 million borrowers will remain a distant dream, economists believe. The number of foreclosed homes will continue to escalate which may result a further decline in the prices of residential houses.