Obama’s Loan Modification Program Gets a Bad Report Card

A recently released study by Cristy L. Romera, as reported in the New York Times, charged by the government to monitor the progress of government loan modifications, has announced that 72 percent of applications by borrowers have been rejected. Citibank, Chase, Bank of America and Wells Fargo, are amongst the worst offenders. Their percentage rejection rates are: 87, 84, 80, and 60. Thus from the period of 2009 through approximately 2014 there were 4 million applications for a government loan modification of which only 881,000 received some sort of mortgage relief. The bank are notorious for slowing down the process by misplacing documents, losing documents, requesting the same documents more than once, and other requests that just add time to a speedy resolution for a loan modification request. Although the banks may reject the numbers and analysis with this report, for anyone involved in the loan modification process understand the obstacles bank impose for a timely review. Some people believe that bank have a financial interest in delaying the process and intentionally slow down the process for the purpose of jacking up the ultimate mortgage obligation by the borrower. Others believe that the banks are just plainly negligent and disrespectful of the process. In either scenario, so many borrowers lose their home, lose hope, and lose faith in the system. If you need a Bronx/Westchester attorney to help you with your mortgage issues, call David J. Babel, Esq., P.C.