WASHINGTON (Reuters) – The Treasury Administration wants lenders and companies that action account mortgage payments to do added to rework afflicted home mortgage loans and will advertise fresh measures on Monday aimed at accomplishing that goal, a administration backer said on Saturday. The Fresh York Times in its Sunday copy quoted Michael Barr, the Treasury Department's abettor secretary for banking institutions, as cogent annoyance with lenders over the apathetic clip at which they are alteration accommodation agreements to advice borrowers accomplish their account payments.
"The banks are not doing a good enough job," the Times quoted Barr saying in a Friday interview. "Some of the firms ought to be embarrassed, and they will be."
Treasury spokeswoman Meg Reilly 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."
That could include new resources for borrowers, Reilly said without offering details. The department will announce new measures on Monday, Reilly added.
The Treasury Department has said lenders have boosted efforts to modify mortgage payments -- essentially by reducing monthly payments so that chances of foreclosure decrease. But there are widespread reports that borrowers continue to have problems negotiating with banks and mortgage brokers to get their payments lowered.
Most loans modified by banks under a program that Treasury monitors remain in a trial stage, and only a small percentage have become permanent.
Barr was quoted by the New York Times as saying that the Obama administration will try to shame lenders by publicly naming institutions that fail to move quickly enough to lower mortgage payments permanently.
"They're not getting a penny from the federal government until they move forward," Barr told the Times.
White House spokeswoman Jennifer Psaki told the Times the Obama administration would continue to refine the mortgage program as needed. "We will not be satisfied until more program participants are transitioning from trial to permanent modifications," Psaki was quoted as saying.
(Reporting By Glenn Somerville, editing by Will Dunham)
