Loans modifications seem is not the answer to the problem of mortgage borrowers defaulting. The rate of borrowers defaulting after their loans are modified is increasing without any indication of slowing down.

Re-default rates and delinquencies continue to increase, U.S. banking regulators said on Monday. The figures showed that six months after loan modifications, about 37 percent of mortgage loans modified in the first quarter were 60 or more days delinquent. With three months after modification, about 19 percent were 60 or more days delinquent or in the process of foreclosure.

"One very troubling point is that, whether measured using 30-day or 60-day delinquencies, re-default rates increased each month and showed no signs of leveling off after six months or even eight months," John Dugan, head of the Office of the Comptroller of the Currency, said in a statement.

The number of delinquencies increased across all loan categories. The subprime loans had the highest default rates. At the same time, nine in every 10 mortgages remain current, the joint report by OCC and the Office of Thrift Supervision said.

The head of the Federal Deposit Insurance Corp and some U.S. lawmakers have called for a more aggressive effort by lenders to modify mortgage terms to help keep people in their homes.