Ranking the Loan Modification Banks

According to a recent Treasury Department report, Bank of America and wells Fargo were the worst performers among the biggest U.S. banks in modifying loans for homeowners facing foreclosure. 4 percent of Bank of America’s loans were eligible for mortgage modifications, or nearly 30 thousand loans in all.  Compare that to the 20 percent rate that JPMorgan was able to modify loans and a clear distinction can be made about just how big of a priority Obama’s ‘Making Homes Affordable’ program is to some compared to others.

Well over 200,000 borrowers in al lhave been aided in some form within the foreclosure resestent plan, which is expected to help 4 million people in all.  The Obama administration is hoping to more than double the current loan modification tallies by November of 2009.  Overall, 15 percent of borrowers have been offered a rate adjustment of some kind. Still, the fact remains that many of the banks and smaller companies expected to provide assistance are understaffed.

To be eligible, you have to be 60 days past due in foreclosure or bankruptcy that started before 2009.

The fact is that many loan modifications are hard to do and the whole process takes time. Paperwork is never easy or fast and this mortgage modification culture breeds lots of paperwork. Provisions are coninually being implemented to speed up the process but more needs to be done.

While some signs point towards stabalization in the mortgage market, I can’t help but believe it’s too early to truly tell.  However long it takes to get out of the mess, it will certainly exceed the amount of time it took to get into it.