David Kirkpatrick

March 24, 2010

White House foreclosure plan under watchdog fire

And seems to be for very good reason — the program just didn’t even come close to delivering on alleviating Main Street pain, and to make matters worse for homeowners in need of relief the Treasury Department still claims offering to help with a troubled mortgage counts as a success. Yes, the government is trying to say starting the process is just the same as actually following through and helping someone stay in their home. What a mess.

From the link:

The Special Inspector General for the Troubled Asset Relief Program said the Treasury Department set targets that weren’t “meaningful,” mismanaged the implementation of the program, and now risks a substantial number of “re-defaults,” with many participants ultimately losing their homes anyway.

The administration’s $75 billion loan modification program may help as little as 1.5 to 2 million people, about half the number Obama said it would when he first unveiled the program in February 2009, the inspector general, Neil Barofsky, wrote in a report.

Recently, Treasury Department officials have come under fire for saying the initial goal applied only to offering trial modifications, as opposed to permanent help.

“Continuing to frame HAMP’s success around the number of “offers” extended is simply not sufficient,” Barofsky wrote, referring to the Home Affordable Modification Program.

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