ProPublica Finds Fed Loan Modification Program Oversight Ineffectual

As part of a program to help homeowners avoid foreclosure, the federal government created a program to subsidize loan modifications by lenders. The Home Affordability Modification Program is funded by tax-payer dollars, but a new report from the non-profit journalism organization ProPublica says government oversight for the program has been ineffectual and weak.

Paul Kiel is a reporter with ProPublica.  He examined audit reports on one of the nation’s largest mortgage lenders, GMAC, and found the federal government may have failed to prevent unnecessary foreclosures.

ProPublica Foreclosure Watchdog Report