HUD reports The US Treasury Department July 1 report says that more struggling homeowners sought help with loan modifications in May. Although the main program introduced by the Obama administration to aid borrowers at risk of foreclosure remains below its initial expectations, we are seeing more homeowners taking action to benefit from loan modifications.

The FHFA, the organization responsible for the Home Affordable Refinance Program (HARP) recently announced that the HARP program will be extended another year and is now set to expire June 30, 2012 rather than that same date this year.

Tim Massad, Treasury Assistant Secretary for Financial Stability, assures us that "The administration remains committed to reaching homeowners who are still struggling so that our country can fully recover from an unprecedented housing crisis,"

The Home Affordable Modification Program was created in the spring of 2009 as the centerpiece program to boost the weak housing sector. It aims to reach out to borrowers by making loan work-outs, extending the life of their loans. The number of borrowers who have received permanent loan modifications since HAMP's inception rose to 731,451 in May, compared with the administration's goal of reaching 3 million to 4 million homeowners when the program was introduced. "The Housing Finance Reform lays out reforms to continue fixing the fundamental flaws in the mortgage market through stronger consumer protection, increased transparency for investors, improved underwriting standards, and other critical measures.

On May 11, 2011 NAR President Ron Phipps Appears emphasized the importance of the MID to home owners, housing, and the overall economy. Watch the video...

U. S. Housing Recovery Program Successes & Progress: Looking at the Facts

A total 32,398 homeowners obtained permanent modifications in May under the HAMP program. That was up 12 percent from 28,867 in April.

The US Treasury Dept said there were 633,459 active trial modifications underway in May 2011, up from 608,615 reported in April of this year.

Bank of America, JPMorgan Chase and Wells Fargo were the top three servicers participating in HAMP, with 160,211, 106,826 and 101,834 active trial modifications, respectively, as of April.