Federal Mortgage Foreclosure Program Falls Short

Washington, DC, April 14, 2010--The Congressional Oversight Panel says that the administration projects only one million families will end up with lower monthly payments as a result of its flagship mortgage foreclosure program.

The panel's report says 6 million families are more than two months behind with their payments, and 200,000 more families receive foreclosure notices each month.

"Treasury is still fighting to get its foreclosure programs off the ground," Elizabeth Warren, who heads the independent panel set up by Congress, told reporters Tuesday.

Warren said that borrowers who have their monthly payments lowered as a result of the program still could lose their homes because the payments remain high and many Americans are facing new financial strains.

The main program gives money to mortgage investors and collection companies that reduce borrowers' monthly payments.

Treasury spokeswoman Meg Reilly said in a press release that "we cannot help those who simply bought a home they could not afford."