Its no surprise here at the firm, the Treasury Department has reported B of A and Wells Fargo to be the worst performers among the biggest U.S. Banks in modifying loans for homeowners.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a5Nm438Sno9k

"Bank of America began 27,985 trial loan modifications, or 4 percent of its eligible loans, under the government's Making Home Affordable Program started this year, the report today shows. Wells Fargo had a 6 percent rate, trailing JPMorgan Chase & Co.'s 20 percent and Citigroup Inc.'s 15 percent. Wachovia Corp., which Wells Fargo acquired, had a rate of 2 percent."

These numbers relate only to loan mods done under the Obama Home Affordable Modification Plan or HAMP.  Bank of America modified 150,000 loans through other programs.  "Wells Fargo modified more than 240,000 mortgages in the first seven months of the year, including 20,219 through Obama's program."

"More than 1.5 million properties received a default or auction notice or were seized by banks in the six months through June, Irvine, California-based RealtyTrac Inc. said July 16 in a statement. That's a 15 percent increase from a year earlier."

Loan modifications have been taking 4-6 months, and in some cases even longer.  This data helps to explain why.  The Banks are not in the loan mod business, they are unprepared, understaffed and overwhelmed.  While we are hopeful that the situation will improve, we at the Firm are not convinced that homeowners should put all reliance on the banks as the government has advocated.  Furthermore, the government and homeowners should keep in mind that the Banks have a duty to pursue profit for the benefit of their shareholders.  The Banks always have the best interest of the shareholders, not the homeowners, in mind as they process loan mods.  Consumers need to keep this in mind if they are contemplating representing themselves.