Solving the Mortgage Mess By Modifying Loans - and Borrower Behavior

Updated

Last week, the Treasury Department took steps to simplify the process for qualifying for a mortgage loan modification through its Making Home Affordable Program. Among the changes, lenders will now have to collect a borrower's paperwork upfront. Borrowers will also be able to give lenders electronic access to their tax returns rather than having to pull those documents together themselves. Both of these things should help ensure that more trial modifications are eventually converted to permanent ones.

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