Wells Fargo & Co. has become the second bank to sign up for a government program to modify second mortgages.

The program is part of the Obama administration's mortgage modification program that is aimed at reducing monthly payments to help customers stay in their homes.

The modification program offers lenders who made "piggyback" loans — second mortgages that allowed consumers to make a small or no down payment during the housing boom — incentives to lower payments or eliminate the loans entirely. During the market's peak, even customers with spotty credit history were extended second mortgages.

By signing up for the program, all customers of Wells Fargo or Wachovia who have already modified their first mortgage through the modification program, known as the Home Affordable Modification Program or HAMP, can also modify their second mortgage.