Washington– The Obama administration will spend less than a quarter of the $50 billion it promised to help homeowners facing foreclosure, the nonpartisan Congressional Budget Office said in a report Monday.
The CBO projection raises fresh questions about the success of the administration’s foreclosure-prevention efforts and its commitment to helping homeowners, even as unemployment hovers near 10 percent. Corporations and large banks appear to be in full-fledged recovery — last quarter, corporate profits reached an all-time high of $1.66 trillion on an annual basis — but households and small businesses seem to have been left out.
Washington policymakers talk constantly about helping “Main Street” recover from the steepest downturn since the Great Depression. Spending less than a quarter of the money promised to help residents of “Main Street” keep their homes may not seem in line with that goal.
President Barack Obama and his top aides, including Treasury Secretary Timothy Geithner, have made numerous pledges to the ever-increasing number of homeowners faced with foreclosure, declines in home value and reductions in equity. The administration’s programs, announced by Obama in a Mesa, Ariz. high school just four weeks after he took office, originally aimed to “enable as many as 3 to 4 million homeowners to modify the terms of their mortgages to avoid foreclosure.”