U.S. Treasury to investigate Florida's mortgage relief program
The U.S. Treasury Department will investigate Florida's $1 billion Hardest Hit mortgage assistance program as the result of problems uncovered by the Tampa Bay Times.
U.S. Sen. Bill Nelson requested the inquiry after the Times reported the program had denied aide to thousands of desperate homeowners while helping felons, tax scofflaws and people chronically in debt.
"We share in your desire to bring more transparency to (the program) and note the importance of your concerns,'' Special Inspector General Christy Romero wrote to Nelson in a letter he received Thursday.
Romero's office already was auditing the national Hardest Hit Fund, Treasury's $7.6 billion effort to stabilize the housing market in Florida and 17 other states hard hit by foreclosures.
Nelson said "a big problem'' was that Florida had distributed less than 16 percent of its Hardest Hit funds in the nearly three years since the program began. As of Dec. 31, only 7,314 Florida homeowners had received aide — fewer than in Michigan, Ohio and North Carolina, states with much smaller populations.