Banks have extended 116,297 permanent modifications under the administration's loan workout program, according to a Treasury Department report released Wednesday.
Under the workout program a borrower must be current on three months of trial modifications before a workout could become permanent.
So far 830,438 trial modifications are still active and 60,476 trial modifications have been canceled, according to Treasury.
Of the workouts, all included an interest rate reduction, 42% were term extensions and 27% had principal forbearance. For those receiving a permanent modification, loss of income was the predominant hardship reason for 57.4%; excessive obligation the reason for 10.7%; and illness of the principal borrower for 2.7%.
Also on Wednesday, House Oversight and Government Reform Committee Ranking Member Darrell Issa, R-Calif., and Rep. Jim Jordan, R-Ohio, sent a letter to Treasury Secretary Tim Geithner asking the Treasury to provide more transparency in its monthly report on the program. The lawmakers noted that Treasury was reporting the cumulative number of borrowers who applied for the workout program but stopped providing that information in its December report.
"It seems clear that the only reason for Treasury to stop reporting a metric that it had been tracking form the start is to cover up the $75 billion program's total failure," the lawmakers wrote.
