Another one that I hesitate to post and pardon my cyncism, but all government loan mod programs to date have been "voluntary" for the banks.  

Treasury Plans to Push Banks to Modify Loans
The Treasury Department announced Monday steps it is taking to encourage lenders to complete more loan modifications, but critics say the new initiative doesn’t address the problems of jobless borrowers or those who are significantly underwater.

The government blames banks and mortgage companies for dragging their feet and, under the new guidelines, will fine them if they fail to increase the number of home owners given relief. It also announced plans to publish a list of the worst banking offenders and to withhold cash incentives until loan modifications are made permanent. The Treasury Department also promises to assign more staff to monitor the process.

The government said it expects 375,000 home owners to be eligible for permanent mortgage reductions by the end of 2009.

Source: The New York Times, Javier C. Hernandez (12/01/2009)

Reproduced with permission of the National Association of Realtors.