House Republicans called the Obama administration’s foreclosure prevention program “a colossal failure” and have introduced a bill to end it.

Republicans are calling for the immediate end of the Home Affordable Modification Program. The program has been under attack from both Republicans and Democrats in recent weeks for the program’s failure to do enough to prevent foreclosures.

It's one more example of why government interference in the private sector doesn't work and that's why it should be repealed, said Rep. Jim Jordan (R-Ohio), who introduced the bill, in a statement.

Administration officials have defended the bill, saying it has helped standardize industry practices and sparked more loan modifications in the private sector.

However, Republicans say that the program has been struck by low participation among home owners and has been far from reaching its goals. By the end of last month, about 522,000 home owners were enrolled in HAMP loan modifications. Yet, the program’s goal is 4 million home owners. The program has faced a high drop-out rate too: About 793,000 home owners who were once enrolled in HAMP have since left.

Source: “U.S. Republicans’ Bill Would End Obama Home-Foreclosure Program,” Dow Jones Business News (Jan. 28, 2011)