Treasury admits federal home loan rescue plans extended the suffering

HAMP WAS DESIGNED POORLY AND IMPLEMENTED TERRIBLY
The HAMP program merely spread out the foreclosure crisis over the course of several years, at significant taxpayer and homeowner expense.

The Special Inspector General for the Troubled Asset Relief Program said the Treasury Department set targets that weren’t “meaningful,” mismanaged the implementation of the program, and now risks a substantial number of “re-defaults,” with many participants ultimately losing their homes anyway.

The administration’s $75 billion loan modification program may help as little as 1.5 to 2 million people, about half the number Obama said it would when he first unveiled the program in February 2009, the inspector general, Neil Barofsky, wrote in a report.

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