The Obama administration has embarked on a campaign to pressure mortgage companies to lower loan payments.  There are growing concerns that a $75 billon tax payer funded effort, coined Making Home Affordable, to help alleviate growing mortgage payments seems to be falling short of expectations.

Originally 3-4 million home owners were expected to be saved from foreclosure.  Edward Pinto, a consultant to the real estate finance industry who previously served as the chief credit officer for Fannie Mae says, “they’re going to be lucky if they save 1 or 1 1/2 million.”

The biggest problem with the effort seems to be the speed at which mortgage firms are making the permanent changes to loan payments.  Less than 1% of the loan modifications under Making Home Affordable have made permanent changes to the mortgages.  It is believed that the efforts under Making Home affordable are now fighting the mortgage bubble problem that was a bigger concern last year.

Many within the industry agree that many of the mortgage firms are moving slowly to change mortage loan payments as they collect lucrative fees on long term delinquency, which lowers the incentive to restructure mortgages and make payments affordable for homeowners.

Read more about the Making Home Affordable plan.