Loan Modification

The Obama administration?s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.

Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly argue that the program, Making Home Affordable, has raised false hopes among people who simply cannot afford their homes.

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?This is a conscious choice we made, not to start with principal reduction,? Mr. Geithner told the Congressional Oversight Panel. ?We thought it would be dramatically more expensive for the American taxpayer, harder to justify, create much greater risk of unfairness.?