Even if the loan modification program ends up with 1.5 million to 2 million homeowners with new, more-favorable terms on their loans, “the program will not be a long-term success if large amounts of borrowers simply re-default and end up facing foreclosure anyway,” the report said.

Neil Barofsky, the Treasury’s Special Inspector General for the Troubled Asset Relief Program, said the Obama administration’s $75 billion Home Affordable Modification Program (HAMP) has a definition of success that is “essentially meaningless.”