Increasingly frustrated by the failure of
mortgage servicers to permanently modify distressed mortgages, the
Obama administration said it would be increasing pressure on the
lenders to make sure they're appropriately implementing the $75 billion
government program that is supposed to reduce the number of
foreclosures. The Treasury Department says that while mortgage
servicers have extended trial modifications to more than 650,000,
they've been moving too slowly in turning them into new permanent
mortgages. In order to improve the numbers, the Obama administration will be sending financial "SWAT" teams to keep a watch over the six largest mortgage servicers,
which handle about 85 percent of outstanding mortgages. The servicers
will have to issue two reports daily on their efforts to turn trial
modifications into permanent mortgages. The Washington Post details that the Treasury will be using "a combination of public shame and monetary penalties" to pressure lenders.
