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Treasury reports on mortgage programs

Washington -- Only 4 percent of homeowners involved in trial mortgage modifications have been accepted for permanent help, U.S. Treasury officials reported Thursday.

About the same number have been rejected, CNN reported. The rest are still in the trial program.

In the first significant report on the program, officials said 759,058 homeowners began trial modifications between the launch of the program in the spring and Nov. 30. While 31,382 people have received permanent changes to their mortgages to help them avoid foreclosure, another 30,650 were rejected for late payments, too little income or failure to do paperwork.

"Our focus now is on working with servicers, borrowers and organizations to get as many of those eligible homeowners as possible into permanent modifications," said Phyllis Caldwell, head of the Homeownership Preservation Office.

The goal of the program, with $75 billion in funding, is to aid at least 4 million people at risk of losing their homes because of mortgage delinquency.

Copyright 2009 by United Press International.

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