The loan-mod time bomb

House Keys

Tick. Tick. Tick. Tick. Tick.

That’s the sound of the federal government’s Making Home Affordable loan modification program, which is set to explode sometime after 2014.

In case you haven’t heard, the program is the federal government’s latest attempt to reduce the high rate of foreclosures. The program creates a process for loan servicers to modify the mortgages of homeowners who spend more than 31 percent of their income on housing costs …