Industry NewsMortgage

Loan mods tracking Treasury target

BofA, Wells Fargo lag in share of offers

More than 85 percent of mortgage loans are now covered by the Obama administration's Home Affordable Modification Program, meaning loan servicers must determine whether foreclosing on a home might prove more costly than offering a loan modification to a troubled borrower.A total of 47 loan servicers were participating in the HAMP program at the end of August, up from 38 in July, and the program is on track to meet a goal of 500,000 loan modifications by November, the Treasury Department said in releasing its latest report on the performance of participating loan servicers.At a congressional hearing today, a Treasury Department official acknowledged that there's room for improvement in the program, which critics say will do little to help stem the rising tide of foreclosures driven by increased unemployment.One in five of the 3 million borrowers the government estimates are eligible for HAMP have been offered trial modifications, the government said in its second monthly report on the p...

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