The Real Deal Miami

Half of remaining TARP funds might go to mortgage modifications

February 06, 2009 09:10AM

The Post reports that federal Treasury Secretary Tim Geithner plans to allocate almost half of the remaining $350 billion in funds from the Troubled Asset Relief Program to mortgage modifications, or the so-called “Mo Mod” program. The 21-day “Mo Mod” program works by creating a new mortgage that more accurately reflects a home’s value, so that a troubled borrower no longer owes more on their home than it is worth. The process can rewrite up to 50,000 loans per month.