It amazes me that someone who has no recent firsthand experience on loan modifications thinks she knows why this is happening and further beleives it is borrowers dropping out. That couldnt be more wrong. The fall outs are not borrowers dropping out of the program but rather borrowers not qualifiying for a permanent loan modification. NO matter how small the relief that a person is granted why would someone not agree to accept a lower interest rate and lowered payments if they were offered to them. Its free money to them! There may be a few reasons not to but the vast majority of these are lender denials for a modification. Someone needs to take her “real estate expert” badge off until she actually is participating in the action to actually know what is going on.