Obama’s Foreclosure Plan Not Doing Enough

By Channing Kennedy Jul 06, 2009

Today, Tim Fernholz at Tapped looks at the numbers around the Obama administration’s Making Home Affordable program, which aimed to work with banks to provide options to homeowners facing foreclosure.

… a variety of reporters, including myself, were able to badger the administration for real modification numbers last week, and found that the administration’s rather elegant plan has been seriously obstructed by the banks’ lack of capacity and interest in modifying mortgage loans. It’s become clear that the administration has not put enough pressure on the banks to get loans modified, either through more restrictions on TARP banks or bankruptcy loan modification, perhaps the most effective tool for tipping the scales in favor of the borrower. Unfortunately, financial sector lobbyists killed bankruptcy loan modification in the Senate a few months ago. Where does that leave us, and in particular those folks on the brink of mortgage default?

Read the rest over at Tapped.