A rescue for Hope for Homeowners?

NPR reports on the largely unused Hope for Homeowners program, part of last summer’s housing bill that was meant to address the crisis in mortgage foreclosures.

The high hopes for its success faded so quickly that expectations were lowered even as it was being passed. The forecast 400,000 mortgage owners that would have been served by the program has translated into 451 applications with just 25 loans closed since October, according to Meg Burns of the Federal Housing Administration, the agency charged with implementing the program.

High loan and interest fees, tough restrictions for consumers and costs to lenders are some of the reasons why the program has not caught on.

Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, “has scheduled votes today on a bill that would allow HUD to loosen pricing restrictions and reduce the amount of losses banks would have to take in some instances to participate,” according to the Los Angeles Times.

Stay tuned…