- Aug 26, 2007
- Reaction score
- San Antonio Texas
- Political Leaning
Borrowers exit troubled Obama mortgage program - Yahoo! FinanceWASHINGTON (AP) -- The Obama administration's flagship effort to help people in danger of losing their homes is falling flat.
More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That's more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes.
Last month alone, 150,000 borrowers left the program -- bringing the total to 436,000 who have exited since it began in March 2009.
Administration officials say borrowers will get help in other ways. But analysts fear the majority will still wind up in foreclosure.
A major reason so many have fallen out of the program is the Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.
Many borrowers complained that the banks lost their documents. The industry said borrowers weren't sending back the necessary paperwork.
Is anyone shocked by this? a Big Gov't we'll save you program failing?
Chalk up another Obama :failpail: