New Law Blogs

We've created a resource page on the government's loan modification program that puts all of our reporting in one place. Take a look. For those looking for a rundown, below is our summary of the program and the problems it has encountered.

The administration's foreclosure prevention program began operation last April. The $75 billion program, called Making Home Affordable, focuses on reducing the monthly mortgage payments of struggling homeowners.

Mortgages that are owned or guaranteed by government wards Freddie Mac or Fannie Mae are automatically eligible. Other mortgages are eligible only if the servicer has signed a contract with the Treasury Department. More than 100 servicers have signed up. Mortgage servicers are the companies that specialize in collecting payments and handling individual accounts; they are frequently subsidiaries of banks, but sometimes are stand-alone companies.

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