More Pressure for Loan Mods -- ZT

Ten state attorneys generals and banking commissioners are
pressuring 16 subprime servicers to adopt more systematic loan
modification programs following their "breakthrough" settlement
agreement with Bank of America to modify 390,000 Countrywide
subprime and payment-option mortgages.

"We urge you in the strongest possible terms to adopt a
comprehensive, streamlined and effective loan modification
program as soon as possible," the state officials say in a letter
that was sent to the servicers on Oct. 7. These officials are
part of a State Foreclosure Prevention Working Group that began
meeting with major servicers last summer to encourage and monitor
their mortgage workout efforts. In a September report, the working
group concluded that servicers' foreclosure prevention efforts
had "slipped" since April and "nearly 8 out of 10 seriously
delinquent homeowners are not on track for any loss mitigation
outcome."