Washington, May 18, 2011 -

In order to get our economy growing, Congress must reduce government spending.  Our nation faces a record-breaking deficit of $1.4 trillion dollars and a record-breaking debt of more than $14 trillion.  We must get America’s fiscal house in order and stop spending money we don’t have.

Republicans on the Financial Services Committee understand this fact and have worked since the 112th Congress began in January to identify government spending programs that are ineffective and need to be terminated.

We identified billions of dollars in spending reductions in our Committee Oversight Plan in February, and we followed up with legislative action to terminate four failed programs.

The Committee held hearings on four of the Obama Administration’s spending programs that are supposed to help struggling homeowners.  The hearings showed that none of these four costly programs is meeting its objectives and that, in some cases, they are making things worse for many homeowners.

In response, Committee Republicans sponsored four separate bills to terminate each of the programs.  Over the course of the next few weeks, Republicans on the Committee led debates on the floor of the House and succeeded in getting all four bills passed and sent to the Senate.  [See H.R. 839, H.R. 836, H.R. 830, H.R. 861]

If enacted into law, these four bills would stop more than $40 billion of the taxpayers’ money from being wasted on these failed programs.

A Wall Street Journal story published on May 6^th details how the programs are failing to meet the Administration's stated goals.

Obama Anti-Foreclosure Efforts Still Falling Short

Wall Street Journal

By: Alan Zibel

May 6, 2011, 3:57 PM ET

The Obama administration’s efforts to tackle the foreclosure crisis have long been troubled, and data released Friday show that, despite some modest successes, they are still failing to meet expectations.

The administration’s signature initiative, known as the Home Affordable Modification Program, has helped about 587,000 U.S. homeowners complete loan modifications despite an initial goal of reaching three to four million homeowners.

The White House started HAMP in early 2009 as an attempt to reverse the rising number of home foreclosures by reducing families’ mortgage payments, typically by lowering the interest rate and extending the term of a loan. Mortgage servicing companies receive incentive payments to enroll borrowers. But strict and complex regulations for who qualifies have combined with problems at mortgage servicing companies to hinder participation.

The program has faced intense criticism — both from advocates and critics of government programs to help troubled homeowners. Nevertheless, enrollment has grown, albeit at a plodding pace. Enrollment in permanent loan modifications through HAMP as of March was up more than 5% from about 557,000 in February, according to Treasury Department data. (Read the report.)

Another 137,000 homeowners were still in a trial phase and awaiting word on whether their modifications will be made permanent as of March. The number of homeowners in this phase was down more than 3% from about 142,000 in February.

Since spring 2009, about 1.6 million modifications have been started under the plan. More than half of those — about 835,000 — have been canceled.

Two newer pieces of the Obama administration’s foreclosure-prevention plan are also assisting relatively few borrowers.

Only about 21,000 homeowners have received modifications for second mortgages such as home equity loans, the Treasury said. At the same time, about 12,000 borrowers entered into agreements with mortgage servicers in another program that provides banks with incentives to allow consumers to complete so-called short sales — in which banks agree to let homeowners sell their homes for less than the total mortgage amount.

Only about 5,400 homeowners have completed the short-sale program, which also was launched a year ago and pays homeowners up to $3,000 if they complete a short sale or agree to hand back the keys to their homes.

The administration’s efforts to combat foreclosures have come under fire on Capitol Hill, with House lawmakers voting earlier this year to end the HAMP program and several other efforts. Senate lawmakers, however, have shown no interest in taking up those bills.