Obama's new federal loan modification program can has been changing the way lenders across the country handle modifications -- whether they like it or not. A new wave of homeowners seeking loan modification is coming, and lenders have the money to back up these modifications, they just need to use it.The foreclosure rate is higher than it's ever been before, and Obama came into office with a huge task on his hands: Fix the housing crisis before it gets any worse. With the new Home Affordable Modification Program, families in any income bracket can qualify for modification and stay on their homes.Before March 2009, when the program was put into action, getting a loan modification was akin to pulling teeth for most borrowers. Lenders were tight-fisted with modifications and not willing to budge at all on handing them out unless the borrower met almost the same requirements as they would have to if they were trying to get refinancing. With the new federal loan modification requirements, loan modification is used to fix a much different scenario than refinancing. Loan modifications are now not available to those who are not going through a period of financial hardship, meaning their debt to income ratio is less than favorable. It's a simple rule: No hardship, no modification. Those who are not going through financial hardship but are having trouble paying their mortgages are encouraged to refinance, for which there is a new program as well.Perhaps the most significant part of the federal loan modification program is the $75 billion dollars in incentive and backing money for lenders. The trick is that they are not allowed any of the money if they are not cooperative with borrowers. A lending firm who is riddled with toxic assets but will not accept any modifications will get absolutely none of the $75 billion. However; despite the incentives, lenders are just not biting like they were expected to and it is taking quite some time for them to adjust to the new rules. This is possibly because not every mortgage they modify will turn out perfectly, and the homeowner might not pay on time each subsequent month, which disqualifies them for some of the incentive money.Experts claim that Obama's federal loan modification program could help 3 to 4 million homeowners who are close to losing their homes, which is quite a bit more than the few hundred households the 2008 FHA plan helped. But no one will know the full extent of how many homeowners will be helped until it is all said and done.