Despite some successes, the Obama administration’s efforts to alleviate the home mortgage crisis have fallen short of expectations.
In data released May 6, the departments of Housing and Urban Development and the Treasury reported that only 670,000 homeowners have been granted permanent mortgage modifications since the inception of the Home Affordable Modification Program in 2009 – and of those, 83,000 subsequently have been disqualified. The goal was to help 3 to 4 million homeowners. Some factors hindering the program include strict criteria for participation and problems at mortgage servicing companies.
Persistent high unemployment continues to put homeowners at risk of foreclosure. And home values continue to decline. Nationally, home prices are down 20 percent from the 2007 peak, and are expected to hit bottom in 2012, according to the real estate data firm Zillow Inc. In the first quarter of 2011, house prices fell 3 percent compared with the previous quarter, Zillow reports. More than 28 percent of single-family home owners owe more than their house is worth. None of this is good news for Obama.
