J.P. Morgan Chase, along with other lenders in the Obama Making Home Affordable Program, may be subject to a Treasury Department review process that is forthcoming to look at lenders’ participation and their willingness to do all they can to help struggling homeowners.
Many people have been upset with lenders in the home loan modification program because there seems to be little being done to help those that are struggling to make their mortgage payment. Homeowners have said that they have abided by the rules and regulations of the home loan modification program only to be rejected from a permanent home loan modification.
Lenders, all the other hand, have said that not all homeowners qualify, turn in their paperwork, or abide by the rules of the home loan modification program. Also lenders have said that there are programs in-house that are set up to help homeowners struggling with a mortgage payment.
The modification program has drawn a large amount of criticism over the past but there are some homeowners who have benefited from a home loan modification. It is the Treasury Department’s hope that this new review process will make more lenders take further steps to help those looking for a modification.
It’s been stated that lenders who are not doing all they can to help homeowners may lose incentives within the home loan modification program. While there are no perfect lenders many have seen increases in their numbers month to month in the home loan modification program.
The Treasury Department hopes that these reviews will not only benefit homeowners but also force lenders to do a better job of helping homeowners that are responsible to avoid foreclosure on.