Citigroup, Inc (NYSE: C), Bank of America Corp (NYSE: BAC) and other large-cap banks are being pressured by the U.S. Treasury Department to improve the rate that they are providing modifications at.
Citigroup, Bank of America and others have stepped up the amount of loan modifications that they have provided to customers during the last year, but neither company is anywhere close to being caught up with the massive backlog of homeowners looking to get modifications. Unhappy customers of both banks post online about their trouble with getting the banks to call them back in any kind of reasonable basis.
Homeowners with Bank of America Corp and Citigroup have widely reported facing difficulty in getting loan modifications approved. Neither company has significant staff to process all of the modification requests that they are getting and now the Treasury Department is demanding better action from the banks.
The U.S. Treasury said that it will be increasing its scrutiny on lenders in terms of their participation in the program. The government said that if lenders do not pass a review process or prove that they are doing all that they can to help homeowners, they may lose some of the federal incentives they are receiving from the government’s home loan modification program.
