In a rare display of self-criticism, officials from the Treasury Department admitted that the government’s mortgage modification program has helped only a small percentage of borrowers facing foreclosures.
According to CNN, the department has revealed that only about 4 percent of delinquent borrowers who began trial mortgage modifications under the housing plan have had those more affordable loan terms made permanent.
The officials have also criticized the nation’s top banks for not doing their part to improve the situation. For example, at Bank of America, where some 1 million homeowners participated in the trial process, only 98 were able to permanently modify their mortgage, The Chicago Tribune reports.
"We’re not satisfied yet with how this program is unfolding," said Herbert Allison, Treasury assistant secretary for financial stability, quoted by the news source.
He added, "The servicers have a lot of work to do, and we’re holding them accountable for their performance."
In the meantime, senior advisor for mortgage finance for the Housing and Urban Development Department has vowed to keep the pressure on both borrowers and servicers to ensure as many mortgage modifications are converted as possible, according to the news provider.
The government’s stated goal is to help up to 4 million troubled homeowners.