Mortgage Industry making few loan modifications to help keep borrowers in their homes
On August 31, President Bush announced a White House initiative to help homeowners facing foreclosure. In his press conference, the President said, "I strongly urge lenders to work with homeowners to adjust their mortgages. I believe lenders have a responsibility to help these good people to renegotiate so they can stay in their home." Regulators have urged the same actions for banks they regulate. [i] Four months earlier, in May, lending industry leaders committed to helping borrowers to avoid foreclosure, by modifying loan terms to "ensure that the loan is sustainable for the life of the...