Two major banks taking heat on foreclosure program - KWWL - Eastern Iowa Breaking News, Weather, Closings

Two major banks taking heat on foreclosure program

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WASHINGTON, D.C. (KWWL) -

The Obama administration says two of the nation's largest mortgage lenders are not doing enough to help Americans avoid foreclosure.

The US Treasury Department says Bank of America and JPMorgan Chase & Co. have done a poor job helping people permanently lower their mortgage payments as part of the government's signature foreclosure prevention program.  The Treasury says those lenders have rejected people who were eligible for mortgage modifications. 

The government first criticized the two lenders, along with Wells Fargo & Co. and Ocwen Loan Servicing, in June, and began withholding financial incentives of up to $1,000 per permanent loan modification.  But Wells Fargo and Ocwen were removed from the list of companies needing "substantial improvement" in the second quarter.

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