Study: Mortgage modifications decline

WASHINGTON, June 3 (UPI) -- Mortgage modifications among struggling U.S. homeowners dropped sharply in May compared to April, a university study said.

Even as the Obama administration touts its commitment to help homeowners, a study conducted by Alan White at Valparaiso University Law School said the number of loan modifications declined 11 percent April to May.

One gap in the system is homeowners who pay their bills, The New York Times reported Wednesday.

Bank of America spokesman Rick Simon said the bank was concentrating on modifications for homeowners "who are already in severe threat of foreclosure."

"We're still putting the systems in place to handle people who are current on their loans," Simon said.

Recently laid off, Eileen Ulery of Mesa, Ariz., called her mortgage lender, Countrywide. The bank offered two refinancing plans, but no modifications to ease her current financial stress.

One option included an $18,000 payment, slightly lower monthly bills and a higher interest rate.

"I just laughed. It was a really good deal for them," she said.

"Who this bailout is helping," Ulery told the Times, "I don't think the government gets it."

"These are the same people you couldn't trust before," she said.