U.S. Wants to Measure Success of Modifications

Treasury Secretary Henry Paulson is tasking mortgage servicers that are part of the new "Hope Now" alliance with finding a way to measure their success in loan modifications.In a speech Tuesday, he said servicers could be more effective in seeking out struggling homeowners who need help and counseling. "I expect to see results," the Treasury secretary said. He asked alliance members -- who currently service about 60% of all U.S. mortgages -- to quickly develop "standardized metrics" for measuring results and evaluating the performance of servicers. "The current process is not working very well," Secretary Paulson said. He expects members of the recently formed Hope Now to be more effective by taking an aggressive approach to loan modifications. "I expect Hope Now to develop and begin reporting these metrics to investors, policymakers, and homeowners," Mr. Paulson said. "It is important that we all be able to measure results."