A new report from a Congressional oversight panel says that the Obama administration’s Home Affordable Modification Program will end up helping only a fraction of the homeowners it was originally designed to.
Administration officials hoped the program, launched in 2009, would help 4 million homeowners. Instead, the final number of homeowners aided will probably be about 700,000.
HAMP offers both borrowers and lenders financial incentives to modify loans that are on the verge of default. Originally estimated to have a $74 billion price tag, so far the program has paid out less than $800 million.
The panel cited several problems with the program, most notably the reluctance of most banks to participate.