Seventeen lenders, as well as 2,300 participants with Fannie Mae- and Freddie Mac-insured loans, started modifications for less than the national average of 16% of eligible loans, while only nine lenders modified more than 16% of their eligible loans. Last month, sixteen lenders modified fewer loans than the national average, while eight lenders modified more loans than the national average.

Here at Woodstock Institute, we’re tracking the mortgage lenders active in the Chicago area to see how they’re performing on their commitment to reducing monthly payments for distressed homeowners. Check back here every month to see who’s getting better—or worse. Note: these numbers reflect the national portfolio of these banks, not just the loans in the Chicago area. Local data are not available. 

Treasury is expected to start reporting on the results of the first round of trial modifications in November or December. Borrowers must make it through the three-month trial period and submit additional paperwork to their servicer in order to receive a permanent modification. As we’ve noted previously, long-lasting reductions in foreclosures will only happen if borrowers have both the means and the will to stay connected with their servicers throughout the trial modification process and enter into a sustainable permanent modification.

Here are the results for performance through September 2009:

091016_loan_mods_small.jpg
091016_loan_mods_2.jpg