What's normal is to not receive a requested loan modification. For all that the Administration may be encouraging banks  to modify loans, they are NOT legally required to do so--banks are free to ignore or deny modification requests and generally do so; only a small minority of homeowners seeking modification receive them. Thus, your bank has responded in a way which acknowledges that you may be having difficulty making payments right now, but which otherwise  ignores  your request for modication, which is its right. You can and should keep trying--but the bank never has to agree to modify your loan.