The Congressional Budget Office says the cost of the government bailout program has dropped by over half.
FDIC Chairman Sheila Bair urged lenders to provide "safe harbor relief" for vacant properties and severely distressed homeowners.
Some economists and business leaders say the Obama administration has slowed down economic progress with populist rhetoric and costly policy measures.
Obama signed a bill on Monday to provide $42 billion in loan incentives and tax cuts for small-businesses, after months of wrangling with Republicans.
The low rate environment has led deposit balances to decline this year.
As banks get down in the trenches to help borrowers take mortgage debt down a notch, second liens still stand in the way of successful home-loan workouts for many.
The banking industry has taken a great deal of time to help troubled homeowners and done a poor job by some accounts.
The government's ineffectual mortgage modification program has prompted individuals like Rosemary Lundgren to look for help elsewhere, often with disastrous results.
While banks and regulators have frittered away precious time, others have sensed opportunity in the rubble of the housing market.
Treasury Department spokeswoman Andrea Risotto responds to specific criticisms about the "Making Home Affordable" program.