The Obama administration on Tuesday offered the first of what will become monthly reports on mortgage modifications, including a name-and-shame approach that'll allow the public to see which banks are and aren't working to help keep struggling Americans in their homes.

    The first report, covering more than 30 lenders, found a dismal performance to date from two banks - Bank of America and Wells Fargo - that have received large sums of taxpayers' bailout money. The report is likely to produce more pressure on these two institutions because the rescue money spent on them was expected to encourage greater lending and more loan modifications.

    In a conference call, Assistant Treasury Secretary Michael Barr said that servicers who collect monthly mortgage payments on behalf of banks and investors who hold pools of mortgages had modified 230,000 distressed mortgages since mid-February. The administration wants large mortgage servicers to modify 500,000 troubled home loans by Nov. 1.

    "I think we've been disappointed ... about their performance in helping people in a timely fashion with the respect they deserve under difficult circumstances," Barr said.

    Most of the homeowners who're falling behind on their mortgage payments are thought to have sub-prime or Alt-A mortgages, those given to weaker borrowers during the housing boom, which was fueled in part by loosened lending standards.

    Publishing the first of its monthly reports on the performances of individual lenders and servicers, the Treasury Department found that Bank of America serviced 796,467 mortgages that were thought to be at least 60 days late on payments and potentially eligible for lower monthly rates.

    The bank, however, extended modification offers to just 99,649 homeowners, or about 13 percent of those eligible, the Treasury report said, and it began trial loan modifications with only about 4 percent, or 27,985 borrowers.

    Wells Fargo led the banking sector's voluntary loan-modification program during the Bush administration's efforts. Yet Tuesday's Treasury report didn't show Wells Fargo in a favorable light, finding that while the bank serviced 329,085 mortgages that were 60 days late, it extended offers to only 38,673 homeowners, or about 12 percent of those eligible, and started trial modifications with an additional 20,219 loans, about 6 percent of eligible.

    CitiMortgage, part of troubled Citibank, did a bit better, according to the report. It extended offers of modifications to 21 percent of eligible homeowners and provided trial modifications for 15 percent. JP Morgan Chase, which has emerged as the nation's strongest bank, extended offers to nearly one in three eligible homeowners and started trial modifications for one in five of its eligible homeowners.

    As many as 2.5 million homes may go into foreclosure this year, the result of a three-year crisis in housing that's seen prices tumble nationwide, and especially in states where prices soared in the first half of the decade: Florida, California, Arizona and Nevada.

    Treasury officials said they didn't have data yet for servicer performance in these four hard-hit states or for high unemployment states such as Michigan and Indiana.

    "I think it is too early to draw any conclusions about how different markets are doing with respect to modifications," Barr said, adding that the Obama administration is aware of widely varying market conditions. "We're highly cognizant of that.... We've taken steps to address regional variation."

    One of the steps taken since the Making Home Affordable program was launched is new payment programs for servicers who modify first lien and second lien mortgages, and government money to servicers who agree to short sales or deed-in-lieu transactions, both of which involve banks taking back properties under expedited terms and without ruining borrowers' credit.

    Last week, the administration offered payments to servicers if home prices continue to deteriorate after loans have been modified, addressing the concerns of states with sharp drops in home prices.

    The administration also has offered a refinancing program in which lenders Fannie Mae and Freddie Mac, which the government has seized, buy qualified loans that can be refinanced. This effort recently was expanded to allow homeowners who owe up to 25 percent more than their homes are now worth to refinance.

    In all, the administration seeks to help as many as 4 million homeowners through loan modifications or refinancing by the end of 2012.

    The monthly performance rating will help the public assess information from the banks that suggests that four in five borrowers are being helped. Many banks have other modification activity that isn't part of Making Home Affordable, Barr said.

    "We have no way of auditing them, of checking their numbers," he said, adding that to date, lenders' efforts have been disappointing. "We think it could have ramped up better, faster and ... we expect them to do more."

    Sales of existing homes have picked up slightly in recent months, and the contraction in new home construction has slowed, giving hope that the housing sector finally may be finding a bottom.

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    On the Net:

    Servicer Performance Report

    Treasury statement