Three servicers have had their federal incentives withheld for not making the grade in a federal program that modifies mortgages to help families keep their homes, says President Obama's monthly "housing scorecard."
Wells Fargo Bank, Bank of America and J.P. Morgan Chase Bank are "in need of substantial improvement" in the Making Home Affordable Program, which to date has permanently modified more than 600,000 mortgages. Issues ranged from errors in calculating homeowners' incomes to ineffective reporting to the program, which is voluntary.
It's possible the Treasury may permanently reduce incentives if the issues aren't addressed "within a reasonable time," the report states.
Many critics say the program is not meeting expectations. The government, which continues to defend the Making Home Affordable Program, initially expected the program would help an estimated 3 to 4 million people.
Wednesday, July 6, 2011
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