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Faced with a sluggish start to the Obama administration’s $75 billion effort to stem foreclosures by reworking loans, Treasury Secretary Timothy Geithner told lawmakers Thursday that the threat of a public backlash would eventually force more firms to rework troubled loans.
“Institutions do not want to live with the consequences of being so far behind the curve of what’s possible,” Geithner told the Congressional committee overseeing Treasury’s Troubled Asset Relief Program. Beginning in August, Treasury began disclosing monthly the number of modifications completed by servicers through the White House’s Home Affordable Modification Program and expects this increased transparency will push lenders to act.
