Obama's Loan Mod Program: 9% Getting Help So Far

Discussion in 'Economics' started by MattF, Aug 4, 2009.

  1. MattF

    MattF

    http://money.cnn.com/2009/08/04/news/economy/Obama_mortgage_modification/?postversion=2009080417

    NEW YORK (CNNMoney.com) -- The Obama administration's first progress report on its foreclosure prevention plan confirms it is off to a slow start.

    Just 9% of delinquent borrowers are in trial modifications so far, the Treasury Department said Tuesday. That translates into 235,247 loans that were at least two months delinquent.

    Under fire for the program's rocky start, the Obama administration says it is on pace to help up to four million homeowners over the next three years. The initiative was announced in February and the first institutions to join began accepting applications in April.


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    $20 billion committed so far, and $75 billion total proposed.

    Even if it meets the goals, 4 million is roughly 20-25% of current delinquencies.

    Give it 3 years, that percentage could eaily drop as more get into trouble.

    Keep up the good work!