Uh Oh! The U.S. Office of the Comptroller of the Currency head, John Dugan, said in prepared remarks that "Put simply, it shows that over half of mortgage modifications seemed not to be working after six months". Well gosh - who knew? When folks are massively underwater and their incomes are declining and the basics of life like food and fuel are rising-even with modifications people can't keep up with their mortgages. Sooner or later people are going to figure it out. Even in California and New York and other high priced places, the population only has so much money. In California the median income for a family of 4 is $75K. Same in New York. How is a family of 4 going to live on that and pay a $5K per month mortgage. They can't and are not. No amount of modification and change this!

Also mentioned in Mr. Dugans' prepared remarks was this "...the report will also show that the greatest delinquencies were in prime mortgages..." Ouch!