Mass defaults bring Obama housing rescue under scrutiny

[thundley4]

Nearly half of the mortgages modified in 2009 under the Obama administration's signature homeowner rescue effort are in default again, according to a report on Wednesday that raised concerns about the program's effectiveness.

The report from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the watchdog for the aid effort, said 46 percent of the struggling homeowners who received loan modifications in 2009 under the Home Affordable Modification Program had redefaulted.

*snip*

The inspector general urged the Treasury to try to determine why borrowers were going off track and said it should require mortgage servicers to look for early warning signals.

"Exactly why people are falling out of HAMP isn't well understood by Treasury," said Romero. "If redefaults are happening at an alarming rate, then you've got to stop that and change the program somehow where you stop the trend."

http://www.cnbc.com/id/100909783

You dumbasses .  People are redefaulting because they are people that should never have been given loans in the first place.  Obama use taxpayers money to let them delay default.

These are probably loans that would have been redlined before democrats stepped in and forced banks to ease their lending criteria.  Instead, we will be hearing about the evil banksters causing all these problems, again.

[NHSparky]

What, people making $40K/yr who took out $600K mortgages (like my ex-wife did) would end up defaulting because they couldn't handle a $3000/mo house payment?

OMG, who knew!