Tags: US | Mortgage | Aid

Bailout Watchdog to Audit Obama Mortgage Program

Wednesday, 17 Mar 2010 01:57 PM


The federal bank bailout watchdog is planning to scrutinize the formula used by mortgage companies to evaluate borrowers for the Obama administration $75 billion mortgage relief program.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, will examine whether the more than 100 companies participating in the program are using the formula correctly. Barofsky disclosed his plans in a letter this week to Sen. Jeff Merkley, D-Ore.

The formula is designed to calculate whether lenders are better off foreclosing or modifying the loan so borrowers can get back on track with payments. Housing counselors complain that many borrowers who are denied are not given a clear explanation.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.

You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved