Mortgage modification numbers still small

WASHINGTON, Jan. 16 (UPI) -- Only a few U.S. homeowners enrolled in a federal foreclosure prevention program have achieved permanent loan modifications, statistics indicate.

Data released Friday by the U.S. Treasury Department showed that only 7 percent of those in the Obama administration's Making Home Affordable program have moved from its trial phase into a permanent loan modification -- about 66,000 of the 850,000 homeowners enrolled, The Washington Post reported.

Government and industry officials have said the main reason is that many of the homeowners in the program's trial phase have been unable to provide enough documentation to prove they qualify and are at risk, but housing advocates counter that in some cases, homeowners have indeed provided the necessary paperwork but are in limbo while waiting for their lenders to act, the Post said.

Overall, Treasury officials said the data is positive because the number of borrowers advancing to the permanent loan modification stage doubled between November and December with more modifications on track to be finished soon.

Treasury Assistant Secretary Michael Barr told the Post, "You have some banks that really did step up to the plate quickly ... and others whose results were disappointing and who need to do much better."