Gov’t Panel: President’s Mortgage Program Not Working

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A new report by the Obama administration's own watchdog group found that the White House's plan to help struggling homeowners has come up short.

Even those who get their payments lowered may not be able to keep up, the study revealed.

Obama Plan Falls Short

The report released Wednesday by the Congressional Oversight Panel concluded the program will likely help only 1 million homeowners, falling short of the administration's original goal of 4 million.

Approximately 6 million families are more than two months behind on their mortgages, with 200,000 more receive foreclosure notices each month.

"It is stunning the position that we're in," Harvard Law School professor Elizabeth Warren said.

The panel slammed President Obama's plan to help those families, saying of the 1.4 million homeowners who've signed up for help through the president's plan, only 230,000 had their mortgages permanently lowered.

"The taxpayers shoveled out hundreds of billions of dollars to rescue these institutions, and now they're not interested in helping that same taxpayer out," Warren said.

Bank Execs Grilled by Congress

At a hearing Tuesday before the House Financial Services committee, top bank executives for four of the nation's largest banks - including Citigroup, Bank of America, Wells Fargo & Co. and JP Morgan Chase - were grilled over the issue.

The banks have been under fire for not doing enough to help struggling homeowners.

"We have not significantly impacted the number of homes in foreclosures. Do you agree this contention?" Rep. Al Green, D-Texas, asked Well Fargo Home Mortgage executive Mike Heidi.

"Certainly there is no question more needs to be done," Heidi replied.

"Sir, more needs to be done?" Green pressed. "What are we going to do about them?"

Meanwhile, some Republican lawmakers say the president should abandon the effort and focus on creating jobs.

"The market needs to find its own footing free of government intervention and manipulation so we can revive our economy and get on with a full housing market recovery," said Rep. Spencer Bachus of Alabama, the committee's senior Republican.

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Charlene  Aaron

Charlene Aaron

CBN News Reporter

Charlene Aaron serves as a general assignment reporter and helps anchor for the CBN News Channel.  Follow her on Twitter @CharNews and "like" her at Facebook.com/CharleneIsraelCBNNews.