The federal bank, thrift and credit union regulatory agencies encourage all federally regulated financial institutions that service or hold residential mortgage loans to participate in the "Making Home Affordable" loan modification program. Guidelines for the program have been announced by the Treasury Department.
The Treasury Department previously has indicated that institutions receiving financial assistance in the future under the Financial Stability Plan established under the Troubled Assets Relief Program will be required to implement loan modification programs in accordance with the Treasury Department's guidelines.
The agencies strongly support the program's goal of promoting sustainable loan modifications for at-risk homeowners that appropriately balance the interests of homeowners, servicers and investors. The federal bank, thrift and credit union regulatory agencies worked closely with the Treasury Department in developing the guidelines.
See the press release for full details.