Mortgage modification program isn't stopping homeowner defaults

The idea behind the $75 billion Home Affordable Mortgage Program is to give homeowners facing foreclosure a means to get lower monthly payments and stay in their houses. The participants must successfully complete a trial period and provide additional documentation to prove that they're able to make these modified payments. They are then eligible for permanent modifications in their loans.

Assistant Treasury Secretary Herbert Allison has provided data to the Congressional Oversight Panel that shows "over 73% of borrowers are current in their trial plan payments," according to documents obtained by Reuters. That's a pleasant way to say that more than a quarter are behind.