House Committee to Investigate Obama’s Modification Program

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House Committee to Investigate Obama’s Modification Program

The House Committee on Oversight and Government Reform has launched an official investigation into the federal government’s foreclosure prevention program.

According to a statement from the head of the committee, the probe was triggered by complaints that servicers have been slow and inconsistent in modifying loans under the Making Home Affordable (MHA) program, and are not communicating clearly with eligible homeowners.

Chairman Ed Towns (D-New York) says he’s a strong proponent of efforts to ease the burden on struggling homeowners but has received “concerning information” that the administration is not fully living up to its pledge to help borrowers mitigate foreclosure.

“While I applaud Treasury’s efforts, numerous concerns have been brought to my attention regarding the effectiveness and efficiency of the MHA program and the extent to which it has assisted struggling homeowners,” he said.

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