Panel Says Loan Mod Program Lags Behind Pace of Foreclosures; Predicts Limited Effect

April 15, 2010, 4:00 AM UTC

The Treasury Department’s Home Affordable Modification Program (HAMP) continues to lag far behind the pace of foreclosures and is expected to help only a small portion of homeowners who are delinquent or “underwater” on their mortgages, the Congressional Oversight Panel said in an April 14 report.

The panel criticized Treasury for a slow response to the continuing foreclosure crisis, which claimed 2.8 million homeowners in 2009. It said administration officials have struggled to get various HAMP initiatives up and running, despite a growing backlog of troubled borrowers.

“For every borrower who avoided foreclosure through HAMP last year, another 10 families ...

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