SACRAMENTO, Sept. 7 (UPI) -- Public opinion of banks and financial institutions is lower than usual because people feel the banks didn't share government money with them, officials said.
The U.S. Treasury Department issued a list of lender performances showing how banks used the Making Home Affordable Program, which provides financial incentives for lenders to work with buyers to make their mortgages more affordable by lowering interest rates or stretching out loan payment duration, The Sacramento Bee reported. The list showed Bank of America modified only 4 percent of its qualifying loans and Wells Fargo modified 6 percent.
Foreclosures and defaults haven't significantly decreased during the three years banks have promised to relieve stress on homeowners.
Bank officials acknowledge they can do better but also say the crisis is growing beyond their efforts to control it.
Residents have the perception the purpose of the bailout fund was specifically to modify mortgages, but actually it was to equip banks to make loans to help get the economy on track, Rod Brown of the California Bankers Association said.