US will pressure loan firms to act

By publishing the names of companies that are lagging behind in the government’s plan to ease the housing crisis, officials are counting on public outrage to get the industry on track. The Treasury Department today plans to report on the progress of loan servicers - companies that collect mortgage payments - that are in line for up to $50 billion in subsidies.

“We want to go faster,’’ said Michael Barr, the Treasury Department’s assistant secretary for financial institutions. “There are a bunch of servicers that are lacking in performance. They have to lift their game.’’

When the plan was launched in March, the government said it hoped to help up to 4 million financially distressed homeowners modify their mortgages to lower their payments. As of last week, just 200,000 homeowners were on track to get a modification, and the government has extracted an oral promise to reach 500,000 borrowers by Nov. 1.

Meanwhile, foreclosures are continuing to rise. RealtyTrac Inc. says 1.5 million American households received at least one foreclosure-related notice in the first six months of this year.

“We’re losing houses rather than making modifications,’’ said Bruce Dorpalen, director of housing counseling at Acorn Housing Corp., a nonprofit housing group based in Philadelphia. “The foreclosure train has not stopped.’’

The 31 participating companies include Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. They have received billions in federal bailout money and are sensitive about their public image.

But there also are many independent companies involved. Most are secretive about their operations and may be less sensitive to bad publicity.

For much of the industry, “there’s no market value to having a good brand,’’ said Julia Gordon, senior policy counsel at the Center for Responsible Lending, a consumer group.

Housing advocates say the plan has been a big disappointment so far, citing many cases in which companies have not followed the rules. When borrowers are denied, they often are not told why, leading to battles between mortgage companies, housing counselors, and borrowers.

The lending industry asks for patience and more time to get going. The administration rolled out the program’s guidelines gradually this year. Much of the program was not finished until mid-May, and the rules were updated again in early July.