Neil Barofsky, the former special inspector general for the Troubled Asset Relief Program, hammered the Obama Administration and Treasury Department Tuesday night at a panel discussion on the foreclosure crisis, saying fears of a political backlash led to the administration's tepid response to the housing crisis and refusal to back principal reductions.

Barofsky, a former assistant U.S. attorney who is now a senior fellow at New York University's School of Law, said the administration's Home Affordable Modification Program was "a failure" because the Obama White House feared being labeled as helping "undeserving homeowners."

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