WASHINGTON (AP) — The Obama administration is blaming the three largest U.S. mortgage lenders for the failures of its foreclosure-prevention program. It says they've done little to help people at risk of losing their homes.
The Treasury Department says Wells Fargo, Bank of America and JPMorgan Chase & Co. have failed to help enough people permanently lower their mortgage payments so they can stay in their homes.
Based on those lenders' lackluster success for the first three months of 2011, the government has removed financial incentives it had given them. They amounted to up to $1,000 per permanent loan modification.
Just a third of the 1.4 million people who applied to have their mortgage modified have had their payments lowered permanently. More than half who applied have fallen out of the program entirely.