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.