Loan modifications result in higher payments

WASHINGTON -- Though lenders are boosting their attempts to curb record-high home foreclosures, fewer than half of loan modifications made at the end of last year actually reduced borrowers’ payments by more than 10 percent, data released today show. The report, based on an analysis of nearly 35 million loans worth more than $6 trillion, was published by the federal Office of theComptroller of the Currency and the Office of Thrift Supervision. It provides the most detailed and broad analysis to date of efforts to stem the foreclosure crisis, which President Barack Obama is trying to combat with a $75 billionplan to promote loan modifications. The report helps explain why many loans are falling back into default after being modified. Many borrowers and consumer groups contend that the modifications offered by the lending industry aren’t very generous, despite more than a year of public prodding from regulators. For instance, nearly one in four loan modifications in the fourth quarter actually resulted in increased monthly payments.