The Real Deal Miami

Obama’s loan mod plan achieves more than 66,000 permanent loan fixes

January 15, 2010 01:04PM

Obama’s $75 billion home loan modification plan saw increased success in December, with 66,465 permanent modifications completed by the end of the month, up from 31,382 one month earlier. Another 46,056 modifications will be complete once borrowers give their final signatures. The spike follows mounting criticism of the plan’s failure to convert trial modifications to permanent ones, and the administration recently stepped up its pressure on loan servicers in response to that criticism. An additional 90,205 underwater homeowners entered trial modifications during the month of December. The administration’s plan grants financial incentives for permanent modifications, but loan servicers have said they are not receiving the requisite paperwork from borrowers, while borrowers complain that servicers are losing the paperwork they’ve submitted. [CNN Money]