Major mortgage loan servicers showed improved results heading off foreclosures in September, according to a government report released Thursday, helping the Obama administration hit a key target ahead of schedule.The Treasury said its Making Home Affordable program crossed the 500,000 loan-modification mark earlier this week, well ahead of its previously-announced target date of Nov.1.
The announcement came as the government released its third monthly report, documenting private sector participation in the $75-billion program, which was first outlined and launched with great fanfare in the spring.
Through the end of September, some 63 firms had signed onto the program, resulting in 487,081 trial modifications, up from 360,000 in July. Some 758,000 borrowers have been made offers so far.
In a statement, the Treasury said “trial modifications are now being issued at a faster rate than new homeowners are becoming eligible,” but added “the administration believes that more can and should be done to assist struggling homeowners and to stabilize the housing market.”
Data on success rates at this point is limited and in a way lagging. The program is barely six months old and its terms require that a modified loan stay current for three months to be considered a success.
