Large banks struggle with mortgage modifications, report says

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The largest U.S. banks have had the most trouble keeping up with demand for mortgage modifications, according to a Treasury Department report to be released today. Of the 31 companies participating in the Obama administration’s loan modification program, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo will probably have struggled to assist homeowners, compared to smaller banks that will have had more success, according to analyst David Sisko, head of default management services at Deloitte and Touche. There have been about 200,000 trial loan modifications under the program so far, and the Obama administration hopes to see at least 500,000 started by November 1.