500,000 helped by Obama mortgage rescue
The administration reaches its goal a few weeks early. But it remains to be seen how many of these trial modifications will work.

By Tami Luhby, CNNMoney.com senior writer
October 8, 2009: 2:26 PM ET


NEW YORK (CNNMoney.com) -- Loan servicing companies have put 500,000 troubled borrowers into trial mortgage modifications, the Obama administration said Thursday.

The administration set that target in late July after it came under fire for not helping homeowners fast enough.

Officials increased the pressure on servicers to speed up their implementation of the president's foreclosure prevention plan, which calls for reducing eligible borrowers' monthly payments to no more than 31% of their pre-tax income. Servicers had until Nov. 1 to hit the half-a-million mark.

The administration also released a related report Thursday showing that 16% of eligible troubled borrowers at least 60 days delinquent were placed into trial modifications as of the end of September. This is up from 12% a month earlier.

President Obama announced the $75 billion initiative in February and the first institutions to join began accepting applications in April. ..."