Arizona Republic story is HERE, HFA Director clearly frustrated by slow progress and is naming names :
We have done and are doing everything we can to spend this money on homeowners who desperately need it," said Michael Trailor, director of the Arizona Department of Housing. "Lenders are making promises and commitments they aren't keeping.
...He also sat down with regulators of the two mortgage backers, Fannie Mae and Freddie Mac, and appealed to them to work with the program several times during the past year, he said. But he and housing directors in other states that received the federal funds, known as the Hardest Hit Housing program, have been turned down by the mortgage giants.
...In March, Bank of America committed to working with Arizona's housing agency to finalize thousands of loan modifications, reducing what borrowers owed in exchange for a partial payoff.
The program can reduce a homeowner's principal by as much as $100,000 if the bank agrees to forgive half. That can translate into a monthly payment reduced by more than $1,000.
The state agency estimates at least 30,000 BofA borrowers in Arizona could be eligible for the aid.
But the lender has yet to complete one of the program's loan modifications, housing officials said.