Why Obama's mortgage modification plan is doomed to fail
"BofA has completed modifications for only 1.5% of the more than 200,000 borrowers it has enrolled, while other companies are processing applications much faster. Ocwen Financial and Carrington Mortgage Services, have completed modifications for more than 40% of their enrolled borrowers."
Amy Pyle took a look at several individual stories of American homeowners looking to take advantage of the program in our faces of loan modification series, but the problems with the system can really be boiled down to three factors:
- It involves the federal government.
- It involves people who are broke.
- It involves stupid, overworked, apathetic employees at large banks (like Bank of America) that don't see loan mods as a profit center and are unwilling to devote the resources to making it happen. Selling credit cards is much more profitable.