Making Home Affordable
The Mortgage Loan Modification Plan
The administration's plan to stem foreclosures will provide incentives and payments to mortgage lenders and homeowners to promote mortgage loan modifications and other foreclosure alternatives (like short sales). The list of recipients below shows the allotment to each participating servicer, but some of that money will also go to lenders and borrowers. So far, the Treasury has set aside a total of $35.6 billion.
You can see a breakdown of how many trial modifications each servicer has begun here. Because of the very small number of permanent modifications, only $60 million of the $35.6 billion set aside has actually been spent, according to the Treasury.
The program also calls for Fannie Mae and Freddie Mac to absorb as much as $25 billion in costs to modify loans that the companies own or guarantee.
On Feb. 19, 2010, President Obama announced a plan to use $1.5 billion of the $50 billion allocated to MHA to assist the five states with the largest home price declines: Nevada, California, Florida, Arizona, and Michigan.
ProPublica's Loan Mod Project: We’ve been reporting on the Obama administration’s loan modification program, and we want to hear from homeowners who are applying for one. Tell us your story.
More info from www.financialstability.gov
Unless otherwise noted, you can republish our articles and graphics (but not our photographs) for free. You just have to credit us and link to us, and you can’t edit our material or sell it separately. (We're licensed under