The House Oversight and Government Reform Committee is investigating the Treasury Department's mortgage modification efforts to determine whether they are efficient and go far enough to aid troubled borrowers.
The committee is particularly concerned about the Home Affordable Mortgage Program, which directs $75 billion to mortgage modification efforts. Rep. Edolphus Towns, the panel's chairman, said in a press release Saturday that the committee has received complaints that servicers have been "slow to modify loans, inconsistent in their application of the program and are not communicating clearly with eligible homeowners."
In a letter to Treasury Secretary Tim Geithner, Towns requested the number of trial modifications by month from January 2009 to the present and the number of trial modifications that have failed to become permanent, among other details. The New York Democrat said he expected to hear back from the Treasury by Feb. 18.