Federal Ban on Up-Front Mod Fees Proposed
The Obama administration is proposing a ban on fees charged to a borrower before a modification firm obtains a loan modification.

In a statement today, the Federal Trade Commission said it is proposing a new rule that would make up-front fees illegal. It would also bar modification firms from advising borrowers to stop making their payments or stop communicating with their lenders.

Modification service providers would also be banned from making misleading promises about the likelihood that a modification will be approved.
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Modification Statistics
As the focus shifts from the number of loan modification trial plans to the number of completed modifications, the country's servicers are touting their strong points. MortgageDaily.com has gathered up a number of modification statistics based on national results, activity at financial institutions and modifications by servicer. Also included are statistics on the government-sponsored enterprises.

BoA Leads HAMP II
Bank of America Home Loans has taken an early lead in the second part of the Home Affordable Modification Program.

Mod Production Leaps
The number of borrowers who have obtained a permanent loan modification under the Home Affordable Modification Program more than doubled last month and will likely exceed 100,000 soon. Citigroup Inc.'s mortgage unit jumped to the front of the pack in HAMP performance.

Nearly 9,000 Mortgage Hirings
Nearly 9,000 mortgage jobs -- most tied to loan modifications -- have been filled or are in the process of being filled, according to recent announcements from several lenders. Some bank positions are also being added.

Credit Scoring Insight
As regulators battle credit repair firms, one company is promising that anyone can start a credit repair business for less than $50. Two companies have identified how much credit scores can be impacted by factors such as loan modifications, late payments and over-extension.

Modification Litigation Explodes
State and federal regulators continued to crackdown on loan modification firms -- filing more than 50 lawsuits since November. Ohio has sued a servicer it claims gave unfair modifications to its borrowers, while Nevada is slapping two firms with criminal indictments.

Over 5k Mod Counselors at Chase
JPMorgan Chase & Co. is adding two dozen locations where borrowers can come in and try to workout delinquent and potentially delinquent mortgages. More than 5,000 loan modification counselors are employed by the company.

GMAC Top HAMP Modifier
Less than 35,000 modifications have been made permanent under the Home Affordable Modification Program, and a GMAC Financial Services unit accounted for a bigger share of them than any other servicer.

3rd Option for ARMs
Borrowers on adjustable-rate mortgages with payment options normally can choose between a higher and lower payment. But a third option has emerged, a new ratings agency report indicates.