Most modified home loans come outside Obama’s foreclosure program

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 cited by the Los Angeles Times, conducted by Hope Now, a non-profit. 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