The U.S. Treasury Department will be intensifying public pressure on lenders in order to put an end to the alarming tide of foreclosures. Their campaign ($75 billion) has finding some sort of common ground as its foundation.
About 651,000 revisions have started through the Home Affordable Modification Program but according to Treasury data, none of October’s trial modifications have been converted to permanent plans.
The administration sees this situation as concerning and additional measures will be taken. Additional steps will be announced today and it seems that private-public partnerships as well as borrower resources will be in the spotlight. The Mortgage Bankers Association predicts that foreclosures won’t peak until sometime in the second half of 2010. All of the parties involved are interested in finding win-win solutions but, as always, there are a few important institutional hiccups which need to be overcome.