Journalism in the Public Interest

Eye on the Bailout

Check Out Our New Loan Mod Page

Attention, bookmarks! We've collected all of our coverage of the government's mortgage modification program into one place. You can also find our interactive charts showing how well -- or poorly -- each mortgage servicer has been performing in the program.

Check it out.

The Story So Far on the Gov’t Loan Mod Program

(Getty Images)We’ve created a resource page on the government’s loan modification program that puts all of our reporting in one place. Take a look. For those looking for a rundown, below is our summary of the program and the problems it has encountered.

The administration’s foreclosure prevention program began operation last April. The $75 billion program, called Making Home Affordable, focuses on reducing the monthly mortgage payments of struggling homeowners.

Mortgages that are owned or guaranteed by government wards Freddie Mac or Fannie Mae are automatically eligible. Other mortgages are eligible only if the servicer has signed a contract with the Treasury Department. More than 100 servicers have signed up. Mortgage servicers are the companies that specialize in collecting payments and handling individual accounts; they are frequently subsidiaries of banks, but sometimes are stand-alone companies.

And The World’s Longest Trial Mod Is…

Photo by Jürgen SchonerEarlier this month, we asked our readers to tell us if they’d been stuck in a trial modification in the government’s foreclose prevention program for half a year or longer. Trial periods are designed to last only three months, after which mortgage servicers are supposed to either give homeowners a permanent mod or drop them from the program.

While homeowners in trial modifications have had the benefit of seeing their monthly payments drop (by an average of $522), there are adverse consequences when a trial drags on, not the least of which is the stress and fear of homeowners not knowing whether they’ll be able to keep their homes.

Hundreds of readers wrote in. And the longest mod turned out to be just about the longest possible: Marlene Colon of Tinton Falls, N.J., and Deb Franklin of Airville, Pa. both first received trial mods starting in May, in the first few weeks of the program. That means they’ve been waiting nearly 10 months to find out whether they will be getting permanent modifications.

Chase and Other Servicers Leave Many in Loan Mod Limbo; Treasury Threatens Penalties

 About 97,000 homeowners in the government’s mortgage modification program have been stuck in a trial period for over six months. Most of them, about 60,000, have their mortgages with a single mortgage servicer, JPMorgan Chase.

Trial periods are designed to last only three months, after which mortgage servicers are supposed to either give homeowners a permanent modification or drop them from the program. According to a ProPublica analysis, about 475,000 homeowners have been in a trial modification for longer than three months.

While the Treasury Department has so far allowed servicers to stretch the trials without repercussions, the government issued little-noticed guidelines in late December, warning that lenience will end at the end of this month. Servicers will have to clear out their backlogs, and those that don’t abide by the guidelines could face "financial penalties," said a Treasury spokeswoman. But Treasury has been vague on how big those penalties will be.

New Data: See the Mortgage Mod Logjam for Each Servicer

The number of homeowners stuck in trial loan modifications continues. Check out our interactive breakdown of the data by servicers.

The logjam of people stuck in trial modifications continues. Data released by the Treasury Department on Wednesday shows that the number of trial mods that have become permanent jumped in January, but the overall number is still just a small percentage of the number of borrowers who've begun the trials.

To illustrate the performance of the servicers in the program, we've created an interactive breakdown of the data by servicer. There, you can see how bad the logjam is at each one.

About This Project

We're tracking where the bailout money is going. Our lead bailout reporter – and blogger – is ProPublica's Paul Kiel. Lead developer is Dan Nguyen.


  • Our frequently updated database tracks every dollar. In the scorecard, we provide a summary generated from the latest numbers.
Photo by flickr user sparkieblues


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