The Treasury Department is weighing changes to its loan modification program, including forcing lenders to delay foreclosures by at least 30 days if they have denied a borrower a mortgage modification.

According to a document obtained by American Banker, the administration also may require lenders to stop any foreclosure actions while a borrower is involved in a trial modification.

The changes would be made to the Making Home Affordable Program, which has been criticized as ineffective. A Treasury spokeswoman confirmed the document is an internal draft proposal and said the ideas are just some of many under review.

The Treasury is also considering allowing trial modifications to be extended by an additional two months, to five, to accommodate delays in receiving necessary paperwork from bankruptcy courts.

The Treasury and the White House are also considering a moratorium on certain foreclosures.

The document also defines a "reasonable" effort by lenders to reach out to borrowers as four telephone calls and two written notices.

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