Specifically, the program is expected to prevent roughly 800,000 foreclosures -- significantly less than the 3 to 4 million foreclosures that the White House aimed to stop, and vastly fewer than the 8 to 13 million foreclosures expected by 2012, the Congressional Oversight Panel for the government’s much-maligned $700 billion bailout package said in a report about foreclosures.
“Treasury has tweaked its main foreclosure prevention effort, the Home Affordable Modification Program (HAMP), but the changes have not resolved the panel’s core concerns,” the panel said.
The report comes as Treasury Secretary Timothy Geithner is set to testify before the panel on Thursday about the bailout package, known as the Troubled Asset Relief Program. Geithner is expected to be grilled with questions about the government’s mortgage modification program and the $50 billion in TARP funds it allocated for foreclosure prevention.
The Treasury Department refuted the panel’s assertion that the program has largely failed most troubled borrowers.
“This program, in less than two years, has already provided critical support to struggling homeowners,” said Treasury spokesman Mark Paustenbach. “This program will continue to help many more avoid foreclosure. The success of the administration’s efforts must also be measured in how it transformed the mortgage servicer industry. Prior to HAMP, there were few, if any, modifications taking place. HAMP was a game-changer.”
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“Treasury has tweaked its main foreclosure prevention effort, the Home Affordable Modification Program (HAMP), but the changes have not resolved the panel’s core concerns,” the panel said.
The report comes as Treasury Secretary Timothy Geithner is set to testify before the panel on Thursday about the bailout package, known as the Troubled Asset Relief Program. Geithner is expected to be grilled with questions about the government’s mortgage modification program and the $50 billion in TARP funds it allocated for foreclosure prevention.
The Treasury Department refuted the panel’s assertion that the program has largely failed most troubled borrowers.
“This program, in less than two years, has already provided critical support to struggling homeowners,” said Treasury spokesman Mark Paustenbach. “This program will continue to help many more avoid foreclosure. The success of the administration’s efforts must also be measured in how it transformed the mortgage servicer industry. Prior to HAMP, there were few, if any, modifications taking place. HAMP was a game-changer.”
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