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Bringing the monthly payment down by 20% does not help when the borrower has no job.Even if the pace of modification quickens, the overhang of unsold homes will remain dauntingly large.
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In January, the pace of modifications picked up, to 45,320.
That may change if the foreclosure crisis deepens and if the slow pace of modifications doesn't pick up.
The Treasury took issue with the report and said the pace of modifications was picking up.
The administration remains confident that the program will end up offering help to as many as three million to four million homeowners, with the pace of modifications beginning to pick up in coming months.
"Yes, as I will announce tomorrow, and I told this to bankers, given the slow pace of modifications, for whatever reason: they're not putting enough people on it, they're not taking it seriously, there are legal obstacles.
The Treasury revealed on Monday that the pace of mortgage modifications slowed in September.
Frustrated by the banks' inability or unwillingness to stop an avalanche of foreclosures, the states are considering lawsuits over the creation and marketing of millions of bad loans as well as the dismal pace of mortgage modifications.
The administration last month announced it would extend the program through the end of 2013, and the pace of trial modifications has picked up a bit from the fall.
Thereafter, the pace of change accelerated.
The pace of change may accelerate.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com