This story appeared in Bank Digest.
The House Committee on Oversight and Government Reform has announced that it is investigating the Treasury Department's Making Home Affordable (MHA) program, after receiving “concerning information” about the effectiveness and efficiency of MHA and the extent to which it has assisted struggling homeowners. In a letter to Treasury Secretary Timothy Geithner, Committee Chairman Edolphus Towns, D-N.Y., asked for specific data to help the Committee in its efforts to investigate the Home Affordable Modification Program (HAMP). The letter states, “... it is my understanding that Treasury has thus far refused to reveal in detail how it defines 'net present value,' one of the key criteria for homeowner participation in the mortgage modification program. Moreover, if a homeowner is denied a permanent mortgage modification, the specific reasons for the denial are not revealed. Finally, Treasury has not established a process for homeowners to appeal the denial of a permanent mortgage modification.”