Borrowers take exit from federal housing program

Most homeowners were rejected during the 90-day trial period, while 6,300 left the program after changes were made to their loans. 

The report found that borrowers prefer private modifications instead of using the government program, while others have opted not to make adjustments to their underwater mortgages. Some borrowers are simply too saddled with other debt to continue, even with modifications. 

Mortgage companies receive incentives from the program to help borrowers change loan terms and reduce payments. 

While more homeowners are expected to drop out of the program in the next few months, it's difficult to determine how many will actually have their loans permanently modified as HAMP winds down.