The federal HOPE for Homeowners lending program, created last year to assist 400,000 struggling borrowers, has refinanced only 25 loans so far as the costs and restrictions deter participation, according to the U.S. Department of Housing and Urban Development.
"The program restrictions have proven to be more and more difficult over time, as economic conditions worsen," HOPE for Homeowners Executive Director Meg Burns said at a House Financial Services Committee hearing in Washington on Tuesday. "At this stage in the mortgage crisis, program standards that effectively shut out large numbers of families in trouble may only perpetuate the foreclosure crisis."
