Feds Begin Releasing Monthly "Hall Of Shame" List Of Foot-Dragging Mortgage Servicers Failing In Effort To Modify Home Loans

The New York Post reports:

• Uncle Sam yesterday released its "hall of shame" for banks that haven't lifted a finger to help struggling homeowners prevent foreclosures -- with Bank of America as one of the worst offenders. Even after taking tens of billions in bailout aid from Uncle Sam, BofA and dozens of other banks have helped just a tiny fraction -- just 9 percent -- of the desperate 2.7 million homeowners who are eligible for federal help but still face being tossed into the street.

• The government offered $50 billion to dozens of big banks to modify onerous mortgages, but a lot of banks have ignored the effort, the Treasury Department said yesterday. "I think it's safe to say we're disappointed in the performance of some of the servicers," said Michael Barr, the Assistant Treasury Secretary in charge of financial institutions, referring to the divisions within banks that collect mortgage payments and which would be the first responders should a borrower get in trouble. [...] Treasury said it will continue to publicize its "hall of shame" with a monthly list of servicers' performance.

For more, see HALL OF SHAME (Treasury Rips Banks For Not Helping Homeowners).

Go here for the Treasury Department's first monthly progress report of loan modification activity by servicer.