Mortgage modification plan too complex?

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Only 15 percent of eligible homeowners have been offered loan modifications since the federal government’s mortgage modification plan went into effect in March. Ken Rosen, chairman of the UC Berkeley Fisher Center for Real Estate and Urban Economics, and John Geanakoplos, a professor of economics at Yale Univeristy, talked to MSNBC about how the program has worked so far. Rosen said he does not think the mortgage industry has the capacity to handle a program as complicated as the government’s mortgage modification plan. Geanakoplos said it is important to reduce the principal amounts on mortgages that are at risk of going into foreclosure.