Mortgage Relief Reaches Fraction Of Homeowners

Setback for Obama administration effort to stem growing foreclosure crisis

WASHINGTON - Just over 31,000 homeowners have received permanent loan modifications under the Obama administration's mortgage relief plan, a big setback for the government's embattled effort to stem the foreclosure crisis.

Lenders blame the low success rate — only about 4 percent of the nearly 760,000 who have signed up — on borrowers who don't return the necessary paperwork to complete the process.
Among big lenders, Bank of America Corp. had the worst results. The nation's largest lender had only completed 98 modifications at the end of November. GMAC Mortgage had done 7,100, the most of any lender in the program launched in March.

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