It’s been reported that the Treasury Department is going to review lenders who are in the Obama Making Home Affordable Program to make sure that mortgage lenders within the program are doing all they can to assist homeowners. Timothy Geithner has even stated that he doesn’t think lenders are doing everything they can to help struggling homeowners.
Many homeowners would agree with his sentiments as they feel that lenders aren’t really working within the rules of the program as many homeowners state they have fulfilled their end of the home loan modification bargain and lenders are simply either uncaring or unwilling to provide assistance for those struggling with their mortgage.
Lenders on the other hand say that they are working with homeowners in the modification program but sometimes homeowners don’t file the proper paperwork or they simply don’t qualify for a modification. Also, many lenders have said that they are using in-house programs as well and the numbers in the home loan modification program don’t truly reflect how much assistance they have provided.
The review process is said to take incentives from any lender if they are proven to be unwilling to help homeowners as best they can, so any lender that is proven to be lacking in their ability or willingness to help homeowners will no longer benefit from the home loan modification program if they are not producing results.
Despite the home loan modification program and lenders not being perfect, it’s still being advised that homeowners who are struggling in their mortgage should contact their lender and find out what options are available either within the home loan modification program from the Obama administration or assistance programs available directly from lenders.