When the Home Affordable Modification Program first cranked up lenders were allowing temporary modifications to be put in place with only stated income information. The big four-Bank of America, Chase, Wells Fargo and CitiMortgage-were all allowing this partial information in approving the initial round of temporary loan modifications, apparently at the request of the Treasury Department in order to speed the process. Now all four convert less than 26% to permanent loan modifications.
This lack of full documentation issue was changed several months ago when new guidelines came out for the HAMP program, and, predictably, the number of loan modifications is dropping because it is taking longer to pull the documentation together, and some simply can't provide the necessary verification. (click here to read more)