A Congressional Oversight Committee report admits that the Home Affordable Modification Program will save far fewer homes than was expected when the program was put into place in 2009. Major conclusions:
• HAMP will prevent only 700,000 foreclosures by the time the program ends in 2012. It had been predicted initially to help 3 to 4 million, and the overall foreclosure problem will affect 8 to 13 million before the crisis comes to an end.
• Treasury has failed to explain adequately why HAMP has failed.
• Treasury has failed to hold lenders accountable for lax paperwork and procedures.
• Treasury will expend only about $4 billion of the $30 billion allocated from TARP funds to the HAMP program. If the program had been properly analyzed earlier these funds could have been reallocated to a more effective program.
These are fairly scathing remarks for a program that should have done more to stop foreclosure.