Obama blames JPMorgan and Bank of America for foreclosure program

The Obama administration recently pointed the finger at JPMorgan Chase and Bank of America for not doing enough to help American homeowners avoid foreclosures. The U.S. Treasury Department said the banks did not do their part to help people permanently lower their mortgage payments through the government's signature foreclosure prevention program.

The Treasury Department also accused the two major banks of rejecting borrowers from the program who were eligible for the mortgage modifications, according to the Associated Press. Spokespeople for both JPMorgan Chase and Bank of America said the banks are working to improve their processes and controls for lending, but they are not driven by the federal incentives.

Originally, the federal government criticized Wells Fargo and Ocwen Loan Servicing back in June for their lack of participation in the program, and withheld financial incentives of up to $1,000 per loan, according to the news source. Recently, however, Wells Fargo and Ocwen were removed from the list of banks needing significant improvements in the second quarter of 2011, and the two banks will resume receiving incentives.

In addition, Wells Fargo recently announced it will offer 32 workshops for homeowners facing foreclosure in 2011. The Home Preservation Workshops will offer homeowners struggling to make mortgage payments the opportunity to speak with a retention specialist one-on-one and work to receive a loan modification or other refinancing option through the Wells Fargo loan modification program or the federal government's Home Affordable Modification Program.  

More News