Bailout Watchdogs Call Mortgage Program a Bust

Government

watchdogs on Wednesday raised a red flag over the Obama administration's program for helping homeowners avoid foreclosure, saying the multibillion-dollar fund is not working and the Treasury Department refuses to fix it. 

Warning that the inefficiencies could hold the economy back, the officials told a Senate panel that changes should be made and that Treasury needs to come clean. One official called the program "one of the greatest failures in transparency and accountability" in the $700 billion bailout. 

A $50 billion fund was carved out of the Wall Street bailout for the mortgage program. The housing market being a root cause of the 2008 economic crisis, the money was pitched as a way to help millions of homeowners avoid foreclosure and get the economy back on track. 

But a fraction of that money, $248 million, has been spent. 

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