Watchdog Panel Finds Fed Anti-Foreclosure Program A Big Flop

It just ain’t working. The government’s foreclosure prevention program that is.

A congressional panel, reports the Washington Post, has concluded that the so-called Making Home Affordable program has, thus far, only “helped” distressed homeowners head off, at least for the time being, about one million foreclosures, by the time all the numbers eventually get added up. The Obama administration had hoped to help more like 4 or 5 million homeowners.

The head of the special panel, Elizabeth Warren, is quoted as saying, “Treasury’s response is lagging behind the pace of the crisis.”

Of course, Treasury Secretary (and best bud to the too-big-to-fail banks) Timothy Geithner was ready with a pithy retort: “It’s still going to be a very painful process for millions of Americans, but we’re going to keep working to make sure this program reaches as many people as we can reach.”

Note the skilled turn of phrase here that marks a really acute political mind at work: “…we’re going to keep working to make sure this program reaches as many people as we can reach,” he said. And, what exactly does that mean? How many people can the government reach? And, can’t the government reach just about anyone it damn well pleases to reach? But by saying such nonsense, he seems to be saying more than he actually is. No numbers. No exact figures or percentages. Just—”as many people as we can reach.”

According to the Post article, more than 150 thousand homeowners who tried to get a permanent mortgage modification have now been dropped from the entire program for a variety of reasons.

Guess these folks are not among the lucky “as many people as we can reach” crowd?

Related posts:

1. Foreclosure Mitigation Deemed A Flop: Congressional Panel Tells It Like It Is; Administration Plan Fizzles; Foreclosures Rise; More Expected; Don’t Expect Much More Government Help; Forget About The Banks Bailing YOU Out; Don’t Bother Rationalization; Treasury Strategy Derided As Not Long Term Solution; Did I Leave Anything Out???; No, I Didn’t!!
2. Congressional Oversight Panel on Commercial Real Estate
3. The Best Mortgage Program Ever?
4. Dogs & Cats: The Silent Victims of Foreclosure – Introducing Help Foreclosure Pets
5. Congress Is Taking a Close Look at Problems with the $8,000 Homebuyer Tax Credit Program

Article Author: Charles Feldman

Charles has written 179 articles for us.
Visit Charles's Website: http://www.thefeldmanblog.com

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Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.