President Obama’s loan modification program is a dismal failure:
Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.
The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday’s report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say. . .
“The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications,” said Mark Zandi, chief economist at Moody’s Analytics.
UPDATE: Stephen Spruiell explains that the program’s real purpose was never to aid homeowners, but Fannie and Freddie’s stockholders. So perhaps it wasn’t a failure after all.