Fewer Loan Mods: Unanticipated Bailout Fallout?

Senator says Treasury's plan could be delaying loan modifications.

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During Sen. Bob Casey's opening statement at a Senate hearing Thursday on the economic crisis, this statement caught my attention:

From the Pennsylvania Democrat's press release:

"After hearing from housing counselors in Pennsylvania who aren't having their calls returned when they try to renegotiate mortgages to keep people in their homes, I can't help but think that banks are holding off on modifying loans because they are waiting to see if they can sell to Treasury."