The federal government has put a freeze on funding for some of the biggest names in the lending industry. Institutions such as Wells Fargo, Bank of America, and JP Morgan Chase are having their stimulus payments withheld until they make “substantial improvements in the way in which they process applications for home loan modifications” a Treasury spokeswoman confirmed on Thursday. The amount being with held is not public knowledge.
The Obama Administrations Home Affordable Modification Program (HAMP) was initially promising to help between 3 and 4 million homeowners nationwide in modifying their mortgages when in reality it has helped a meager 670,000 families since its origination.
The holding of funds is hoped to be an incentive for Wells Fargo, Bank of America, and JP Morgan Chase as well as seven other large mortgage servicers to reevaluate and improve their loan modification application process, in turn drastically improving the number of home owning Americans able to benefit from the Obama Administration’s Home Affordable Modification Program.