Administration's Mortgage Relief Program Growing

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STEVE INSKEEP, host:

In this country, the Treasury Department is releasing a monthly foreclosure report card on the nation's major banks. The report card tracks how they're implementing President Obama's plan to keep people in their homes. Here's NPR's Chris Arnold.

CHRIS ARNOLD: The administration says its program has now become more successful than any other foreclosure prevention effort to date. The latest report card shows that lenders have lowered loan payments for more than 360,000 people.

Guy Cecala is the publisher of Inside Mortgage Finance.

Mr. GUY CECALA (Publisher, Inside Mortgage Finance): I think we are seeing some progress, but if, you know, this is a report card, you know, the previous report card was maybe a D and now we're up to a C-minus.

ARNOLD: Cecala thinks that with foreclosures still rising to record levels, most banks should be doing much more on this front. Through the president's plan, JPMorgan Chase and CitiMortgage have both started trial loan modifications on upwards of 23 percent of their delinquent loans. Meanwhile, Wells Fargo and Bank of America have modified a much lower percentage of their problem loans, and they manage by far the most loans.

Mr. CECALA: They still have the lowest levels. They've improved. Bank of America went from 4 percent to 7 percent, and Wells went from six to 11 percent. So that's, you know, market improvement, but you really want to see their numbers up if that's at all possible.

ARNOLD: The banks say some of their efforts are not captured by the report card. They say some borrowers who don't qualify for the president's program are getting help in other ways. The administration says the Making Home Affordable plan is on track to meet its goal of reaching half a million homeowners by November.

Chris Arnold, NPR News.

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