Data raises questions if government funds might be better spent on job creation.
WASHINGTON (AP) -- More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again, banking regulators said Monday.
The new data raise questions about whether government money may be better spent on creating jobs, rather than averting foreclosures, said John Reich, director of the federal Office of Thrift Supervision office at a housing industry forum sponsored by his agency.
http://money.cnn.com/2008/12/08/real_estate/meltdown.ap/index.htm?postversion=2008120814
I am still a big fan of having a well thought out mortgage modification program. I believe the initial wave of defaults is more do to the inconsistent nature of how they have been structured. I hate to see us give up on this tool.