Home > Avid Law Center, Loan Restructuring > Tired Of Getting The Run-Around By Banks, You’re Not Alone

Tired Of Getting The Run-Around By Banks, You’re Not Alone

JP Morgan ChaseThe Obama administration is keeping a close eye on banks who aren’t doing enough to help this foreclosure crisis, saying it will keep the pressure on two big U.S. banks to help more troubled borrowers from losing their homes.

According to the Chicago Tribune, The Treasury said Bank of America and JPMorgan Chase & Co need to improve their loan modification efforts to merit the financial incentives the administration’s housing rescue program provides to mortgage servicers.

JPMorgan is at risk of permanently having support reduced if it does not make substantial improvements in time for the first quarter of 2012, the Treasury said. They are doing a poor job helping people permanently lower their mortgage payments and have been cited for rejecting people who were eligible for mortgage modifications three separate times since June.

Under The Treasury’s Home Affordable Modification Program, known as HAMP, mortgage servicers receive incentives to rewrite loan terms to reduce monthly payments for struggling borrowers. Servicer assessments are instrumental in the Treasury’s efforts to hold servicers publicly accountable for their performance and keep necessary pressure on them to improve.

The Treasury began issuing updates on the 10 largest mortgage servicers in June, assessing how the companies reached out to troubled borrowers and carried out loan modifications. Since then, Wells Fargo and Ocwen have made improvements in implementing mortgage modifications and were removed from Treasury’s watch list.

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