Obama’s foreclosure program not impacting most modified home loans

Mitt Romney has called for a less “government-centric approach” to fixing the housing crisis. Now, a new study shows President Barack Obama’s foreclosure rescue program is having a limited impact on distressed borrowers.

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Of the 5.66 million distressed borrowers that have modified their mortgages over the last five years just 1.04 million did so through the Obama administration’s Home Affordable Modification Program, according to a study by Hope Now cited by the Los Angeles Times. The remaining homeowners modified with loans not offered by the program.

The Times said the study is more evidence that the program has fallen well short of its goal of helping 4 million homeowners through the end of this year. However, the program is credited with offering cheaper, better quality loan modifications. [LA Times] — Adam Fusfeld