Government Watchdog Claims Obama Mortgage Program Not Working

A government oversight official recently told a Senate panel that President Obama’s program to help troubled homeowners avoid foreclosure is not working and that Treasury Department officials have failed to fix the program’s shortcomings. Neil Barofsky, Special Inspector General for the financial bailouts, told members of the Senate Finance Committee that the Treasury Department has ignored demands to establish clearer goals for the program. Barofsky made the statements during a hearing on the $700 billion bank bailout. Another member of the panel, Elizabeth Warren, who chairs the Congressional Oversight Panel on the bailouts, told members that the Treasury’s failure to move swiftly could be impairing economic recovery efforts. The administration created the homeownership program to help homeowners keep their homes and avoid foreclosure by reducing the principal balance on homes to reduce monthly mortgage payments. Records indicate the program has helped at least 400,000 homeowners thus far, but 530,000 more have stopped participating in the program for undisclosed reasons. The federal bailout allocated $50 billion to fund the mortgage modification program, but as of July 2010, the program has only issued $248 million in funds. Barofsky told panel members that the Treasury’s broad parameters for the program give mortgage lenders too much room in deciding who qualifies for principal reduction. If your current home doesn’t have enough room to meet your needs and you’re looking for Louisville homes for sale, we invite you to explore the pages of our site and browse our extensive listings of residential and commercial Louisville real estate. No one has a wider selection from which to choose and offers more services for buyers and sellers than Louisville Properties does. For more information, call us today at 502.744.9504! Resource link:

Join The Discussion

James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

Contact us

  • This field is for validation purposes and should be left unchanged.



Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

Compare listings