Impressive improvements in the loan-modification rates were displayed by Wells Fargo and Bank of America in August. During the previous period, the financial majors had forwarded a poor monthly performance.

It should be noted that the two firms are still much behind competitors like JPMorgan Chase; but have been able to ramp up refinancing efforts considerably. While Bofa was successful in more than doubling its loan-mods, completing 59,891 workouts; Wells improved its performance by 64%; concluding 33,172 modifications thus far, under the Home Affordable Modification Program (HAMP).

Wells was able to modify an additional 251,244 via its own, separate endeavors. The company, as per Mike Heid, co-president of Wells Fargo Home Mortgage, is well on its way to surpass its portion of the government's refinancing targets.

In spite of this, the Treasury department's monthly report displayed that offers were extended by the Bank of America to 15% of borrowers that were eligible for HAMP, apart from working out 7% through August. While Wells Fargo extended offers to 25% and assisted 12%; Wachovia proposed to support 3% of its eligible mortgages, and started modifying 2%.

In contrast, 33% of borrowers have been offered to be helped by JPMorgan, which finished modifications for 25%. Meanwhile, Citigroup (C Quote) extended offers to 31% and helped 23%.

"Wells is pushing hard to work out troubled loans because it helps the company as well as taxpayers, customers and investors," said Hied, while adding, "There is a common misperception that we make money off of foreclosures, and there is nothing further from the truth. No one benefits from foreclosures."