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July 8, 2009

Study: Despite Federal Aid, Banks Ignoring Struggling Homeowners
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A new study says billions in government aid has failed to induce
mortgage lenders to help homeowners facing foreclosure. According to the
Federal Reserve Bank of Boston, only three percent of delinquent
borrowers have had their loans restructured to lower monthly payments.
The Obama administration has committed some $75 billion dollars to
mortgage lenders with the stated purpose of funding the restructuring
loans. The study recommends that the money instead be given directly to
the borrowers instead of the lenders that have refused to help.