In an effort to get servicers to be even more diligent in improving conversion rates, Treasury is now telling servicers that they will not receive “a penny” from them until and unless the temporary modification converts to a permanent modification. While this would incent servicers to work every more diligently to convert trial modifications in the pipeline, I would be concerned that servicers now bare fallout costs for issues they cannot control, i.e. over indebtedness, unemployment, negative equity, etc....