U.S. Officials Seek Efficient Mod Borrower-Servicer Matches

Obama administration officials believe they have designed a loan modification program that will fit a wide range of struggling homeowners and they want to ensure that these borrowers are guided quickly to the right servicer. "This mod program is the right option for most folks," said William Apgar, senior advisor to the HUD secretary for mortgage finance. And special emphasis is being placed on the "triage function to make sure that folks that just need information about whether they are eligible can be sent directly to the appropriate servicer," Mr. Apgar told a Washington meeting of the National Alliance of Community Development Associations. The Department of Housing and Urban Development official also noted that servicers are responding to the "generous" loan modification incentives and building up their processing capacity. "We are already seeing announcements of servicers hiring new staff and opening up new call centers," Mr. Apgar said. At the same time, the administration is concerned foreclosure rescue scam artists are ramping up, too. "There are so many scams out there that people won't be able to tell the true mods from the false ones." He said HUD is working with state attorneys general, the Federal Trade Commission and others to keep a lid on these scams.