With the numerous reported failures of the federal program known as HAMP, inside senior officials seem to be jumping on the band wagon displaying their new found pessimistic viewpoints on where this program may be headed.

There were notices recently shared among one key senator and Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), on the subject of HAMP with Barofsky saying that over one-and-a-half million or so consumers would get any type of mortgage assistance.

But the sobering reports is that almost 4 million Americans including St Louis home loan owners that actually need this federal assistance. Yet, most professionals are despondent at the reality of this number being achieved.

The reason for this bleak outlook is that fewer than 200000 or five percent have actually moved on from the probationary plan into a permanent modification mode.

But if matters couldn't be worse, the inspector general's report warned that many borrowers are at jeopardy of re-defaulting on their St Louis mortgage loans even after receiving help under the federal program.

Again the critics are coming out of the wood works suggesting that these mortgage owners are irresponsible. But the reality of the matter is, many still owe more money than what their house is worth not mentioning that others have second mortgages.

Without digressing to a great degree, I think its fair to mention the abominable acts of not just the big insurance and banking leviathans but the average person who bought a home they knew they just never afford and did it by taking the only type of loan that could give them this undeserved asset. Then you have the pure fraudulent acts of those who knowingly lied on their stated income application. Three years later, these actions have come to be known as "liar loans."

Getting back to the facts, Barofsky then shows his further skepticism basically saying that these loan modifications may not be the best program to continue offering. The Treasury department had other opinions as to the wide spread criticism.

In a long, drawn out comment included in the report, Herbert Allison, assistant Treasury secretary for financial stability said the program "should be measured by how many eligible mortgage owners are able to avoid the pain and stigma of foreclosure by paying down their mortgage payments to affordable levels while either staying in their homes or transitioning with dignity to more suitable housing. The number of permanent modifications is one element, but not the only element of gauging the success."

Whether this federal program meets its ultimate success or failure is second only to the fact that these key officials want us to view their opinions from their viewpoint and no other.

Allison seems to want everyone to understand that the important point is not the failing of HAMP, but that Barofsky is simply not assessing its lack of success in the correct manner.

Due to the fact that Allison clearly points out that permanent modifications are really only one way to help suffering homeowners, this somehow suggests that he himself doesn't firmly believe his previous comment.

We cannot ignore the fact that these services are also offering other foreclosure prevention initiatives such as short sales as realistic alternatives. It is sad that many of these mortgage owners both nationally and locally can no longer qualify for any type of St Louis refinancing options.

Yet, most people who have been following this program from its inception were spoon fed the amazing viewpoint that permanent loan modifications through HAMP was the finest and perhaps the only way the country would see this overwhelming amount of foreclosures go away.

And as we are finding out, many of these modifications did not include a realistic principal reduction, which means in all likelihood, they will continue to fail.

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