GAO gives home loan modification program poor marks

The Government Accountability Office on Thursday reported that President Obama's Home Affordable Modification Program continues to operate below par.

The program began in Mar. 2009. Of the 3 to 4 million loan modifications the program was to assist, fewer than 200,000 permanent modifications have been made through Feb. 2010.

Much of the TARP money to help fund the program has also been spent.

"As of early March 2010, the TARP-funded portion of the program had 113 participating servicers, and about $36.9 billion of the $50 billion in TARP funds for [the program] had been allocated to these servicers," the GAO report states. 

A lack of internal controls is one of the main issues with the program.

"Given the magnitude of the investment of public funds in [the program] and the fact that the program represents direct outlays of taxpayer dollars rather than investments that may yield a return (as in other TARP programs), it is imperative that Treasury continues to improve [the program's] transparency and accountability," the GAO report states. 

A White House briefing updating reporters on Obama's housing policy is slated for Friday.

Follow this link to the report: http://www.gao.gov/cgi-bin/getrpt?GAO-10-556T

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