Inspector general: Mortgage modification program a 'failure'

By Gregory Korte, USA TODAY Updated Updated 1d 21h ago |

WASHINGTON A mortgage modification program aimed at saving homeowners from foreclosure has failed because regulators are "afraid to rein in or impose penalties on the mortgage servicers" whose record "has been nothing short of abysmal," the program's watchdog told Congress Wednesday.

As a result, some House Republicans moved to scrap the 2-year-old program.

Neil Barofsky, the special inspector general for the government's bank bailouts, bluntly labeled the mortgage program a "failure" in testimony before the House oversight committee.

"And I think that if Treasury doesn't respond to some of these things in a quick manner," he said, the call to dismantle the Home Affordable Modification Program (HAMP) "is just going to become a louder and louder chorus, and understandably so."

Three Republicans, led by Rep. Jim Jordan, R-Ohio, introduced a bill Tuesday to end the program, saving up to $30 billion in unspent bailout funds.

Inspector general: Mortgage modification program a 'failure' -
Another miserable failure, but what else is new. At least there is still something to salvage from what's left. I don't think there is any getting back the $800 Billion dollars wasted on the other epic fail, the Stimulus plan. The Incompetence in Washington by the people who devised these "plans" is simply breath taking.