Yesterday the US Treasury stated Bank of America, Wells Fargo and JP Morgan Chase were not fulfilling the goals of the Making Home Affordable program (using taxpayer TARP money) and as needing “substantial improvement” in handling the flood of requests for loan modifications. Because of these shortcomings, the US Treasury is withholding financial incentive payments that were designed to encourage the large banks to aggressively tackle underwater loans through loan mods or HAFA short sales.

Well duh – any Realtor working in the trenches can share their horror stories about interminable delays, lost paperwork and multiple submissions of paperwork that has plagued the real estate business because of these issues! Despite all the talk bank leaders tell Congress that they’re “doing everything possible” to handle the tsunami of short sales and loan mods, it’s obvious they’re not doing enough to staff up their resources to handle these issues.