Treasury to meet with mortgage servicers Monday

A for sale sign sits outside of a house in Miami Beach October 22, 2009.

WASHINGTON (Reuters) - The Treasury Department is expected to meet with lenders on Monday to press them to do more to rework troubled home mortgage loans, a source familiar with the Treasury's thinking said.

Herbert Allison, the Treasury Department's assistant secretary for financial stability, is expected to meet with the mortgage servicers, said the source who requested anonymity because the meeting has not been publicly announced.

The New York Times in its Sunday edition quoted Michael Barr, the Treasury Department's assistant secretary for financial institutions, as expressing dissatisfaction with lenders over the slow pace at which they are amending loan agreements to help borrowers make their monthly payments.

A Treasury spokeswoman said on Saturday the department was taking additional steps to enhance mortgage servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications.

The Treasury spokeswoman said that that could include new resources for borrowers and said the department will announce new measures on Monday.

(Reporting by Rachelle Younglai, editing by Matthew Lewis)