Is the Obama administration’s anti-foreclosure plan just a way to keep some home values at their old bubble peaks?

This article suggests that’s precisely what’s happening.

The $75 billion Home Affordable Modification Program (HAMP) is supposed to work by “modifying” terms of original loans to struggling mortgage payers. But a congressional oversight panel has apparently found that most modifications are to interest rates, not to mortgage debts, and those interest-rate modifications are only temporary.

So many homeowners taking part in the taxpayer-funded program are still stuck with bubble-era mortgage debts that don’t reflect current lower home values – and they’ll get socked later with rising interest rates.

File under: Your tax dollars at work.