“HOPE for Homeowners” is a federal lending program that was established in 2008 to much fanfare to help 400,000 homeowners refinance their mortgages to avoid foreclosure. So far, only 25 families have received home loans.

Meg Burns, HOPE’s Executive Director, claims that there are too many restrictions that prevent homeowners from qualifying.

Barney Frank (D-Mass.), Chairman of the House Financial Services Committee, claims that the program was flawed from the beginning, and will hold a vote today on a bill that would make it easier for homeowners to qualify for refinancing.

WHAT THIS MEANS FOR YOU

25 out of 400,000 is .00625 percent. That’s a pretty low success rate by anyone’s standards, even Uncle Sam’s.

How low? It’s the equivalent of getting 1 hit out of every 16,000 times at bat. It’s the equivalent of 4 inches out of a mile.

To say that this is a failed government program would be an understatement. You have to wonder how many taxpayer dollars went into setting up and running a program that was doomed to fail. What was the cost to us taxpayers on a per loan basis?

That said, I can understand how in the rush to pass legislation last year they choose a conservative path, albeit too conservative.

The fact that Congress is attempting to revise the program to loosen the standards is good news for you. Ms. Burns, who heads the residential housing programs at the Federal Housing Administration under HUD, seems committed to finding ways to make the program work.

This is part of a larger trend to help homeowners who are facing foreclosure. The legislation that was passed in 2007 and 2008 were steps in the right direction, but didn’t do enough fast enough. As we begin 2009 we expect to see existing plans reworked and new programs implemented.

If you are already in the foreclosure process these changes may be too little too late. If you are hanging on but worried about your ability to pay your mortgage in the future, then help may be on the way.