Free Republic

Wells Fargo & Co. acknowledged Tuesday that it failed to offer mortgage modifications to hundreds more borrowers than were due them and that many ultimately lost their homes because of the error. *snip* Now, in a regulatory filing released Tuesday, the bank said it improperly denied modifications to 870 borrowers — nearly 40% more than first thought — and that 545 of those borrowers later lost their homes.

More than half – 682,659 homeowners –of the more than 1.3 million borrowers in the Obama Administration’s mortgage modification effort have dropped out of the program as the foreclosure crisis shows few signs of abating. The Home Affordable Modification Program (HAMP) update for August, released today, shows that 51 percent of the 1,334,117 borrowers who started trial periods of reduced monthly payments have cancelled out of the 16-month-old program. In July, the dropout rate stood at 48 percent.