New report slams foreclosure program - WAOW - Newsline 9, Wausau News, Weather, Sports

New report slams foreclosure program

WASHINGTON (ABC)--  A new report is slamming the Obama administration's efforts to help troubled homeowners stay out of foreclosure.  It says millions of families will not get any help from the program, and even those who get their payments lowered may not be able to keep up.

More than four million Americans are in danger of losing their homes.  Some whose home value has dropped, are not getting the helping hand promised by the Obama administration.  

A report by the administration's own watchdog found that of the 1.4 million homeowners who have signed up for help through the president's plan, only 230,000 have had their mortgages permanently lowered.  

Representative Al Green of Texas, says" We have a great challenge before us. If we do nothing, the impact on the economy can be devastating."

On Capitol Hill Tuesday, four of the nation's biggest banks pushed back, questioning why they should help homeowners now underwater, saying that would take hundreds of billions of dollars.

Elizabeth Warren,  Chairman of the Congressional Oversight Panel to investigate TARP, says "The taxpayers shoveled out hundreds of billions of dollars to rescue these institutions and these same large institutions don't seem to want to be part of the solution."

On Wednesday, a House committee will question a Treasury official about the program.  And President Barack Obama will meet with both Democratic and Republican Congressional leaders to discuss new regulations for Wall Street.

Online Reporter: Jill Courtney

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