More and more lawmakers are declaring the federally funded HAMP
mortgage modification program a failure. Rep. Spencer Bachus (R.-Ala.), the ranking Republican on the Financial Services Committee (at left in photo), thinks he knows why. Bachus delivered a letter to committee chairman Barney Frank (D.-Mass.) requesting an investigation of allegations
by a former Fannie Mae employee who claims that Fannie Mae runs HAMP to improve its balance sheet, rather than to help homeowners. The former employee, Caroline Herron, is suing Fannie Mae for terminating her after she asked for reform in the program.