WASHINGTON Nov 3 The Obama administration's
main home foreclosure prevention program saw a substantial
boost in permanent loan modifications in September, in part due
to improved technology for reporting the status of cases.
U.S. housing authorities said on Thursday the Home
Affordable Modification program helped 40,141 homeowners
achieve a permanently lower mortgage payment in September, up
from 25,434 homeowners in August.
The U.S. Treasury Department and the Department of Housing
and Urban Development said 856,974 homeowners had been granted
permanent loan modifications since the program was launched in
2009. But 136,362 of these reductions had been canceled -- an
increase of 10,064 in September.
When it launched the program, which provides financial
incentives to servicers who rework mortgages for struggling
borrowers, the Obama administration had hoped it would reach as
many as 5 million borrowers. So far, the program has started
1.71 million trial and permanent modifications.
In the September data, the agencies said that some
permanent modifications were previously reported as "aged"
trial modifications due to problems that prevented mortgage
servicers from reporting them as permanent modifications. The
technical changes allowed these loans to be put into the
permanent category, the agencies said.