Administration Plans To Press Mortgage Companies To Speed Help

WASHINGTON – The Obama administration is expanding its efforts to confront the foreclosure crisis.

The Treasury Department says the administration will announce steps on Monday aimed at accelerating the number of home loans being converted in loans with lower monthly payments.

Industry officials say those steps will include highlighting mortgage companies that are lagging behind on loan modifications.

The Treasury is also expected to apply pressure by waiting until loan modifications are permanent before paying cash incentives to mortgage companies that are lowering them. Under the program, companies agreeing to lower payments initially collect $1,000 for each loan and $1,000 annually for up to three years.

Critics say the program has failed to do enough to stem the wave of foreclosures.

A Treasury spokeswoman says the new steps will improve “transparency and accountability.”