Federal Mortgage Aid Program Falls Short

Washington, DC, Oct. 3, 2011 -- A federal government $1 billion mortgage program to help the unemployed will likely end up spending only half the funds because few people could meet the qualifications, according to the Housing Department.

The department, which had to approve the applications for the Emergency Homeowners' Loan Program by last Friday, expects that only 10,000 to 15,000 people will qualify.

The program was passed last year as part of the Dodd-Frank financial reform bill and was modeled after legislation in Pennsylvania.

The federal program offered interest-free, forgivable loans to homeowners who lost at least 15% of their income because of the economy or their own medical condition.