Panel: Obama Loan-Mod Effort Ill-Suited To Avert Foreclosures

WASHINGTON -(Dow Jones)- The Obama administration’s loan modification effort is ill-suited to tackle the current causes of the foreclosure crisis, financial rescue watchdogs concluded in a new report.

Meanwhile, the Home Affordable Modification Program, or HAMP, wasn’t designed to address these problems, nor is it geared towards averting a looming wave of foreclosures caused by resetting option adjustable-rate mortgages, they wrote.

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