Treasury Provides $3B More For Foreclosure Program

MARTIN CRUTSINGER

WASHINGTON (AP) — The government will provide another $3.1 billion to a group of mortgage servicing companies as an incentive to modify loans to combat record levels of foreclosures.

The Treasury Department said Tuesday that the modifications, which included reductions in projected payments for some companies, pushed the total amount for the program to $18.3 billion, from $15.2 billion.

The department also added one company, Residential Credit Solutions of Fort Worth, Texas, to the program. It is scheduled to receive up to $19.4 million, and joins 15 other mortgage companies approved to participate in the program.

The biggest adjustment was made for Countrywide Home Loans Servicing LP, part of Bank of America Corp., which received an increase of $3.3 billion, bringing its total to $5.2 billion.

Treasury spokeswoman Meg Reilly said the original estimates were based on publicly available information. The revised estimates were calculated using more accurate data supplied by the companies. Further adjustments in the amounts available to the companies will be made on a quarterly basis, she said.