Treasury to revise estimates of dropouts from mortgage-aid program after analysts note flaws

Treasury says latest mortgage-aid report flawed

WASHINGTON — The Obama administration is revising the latest report on its troubled mortgage-relief program, and the changes are likely to show a greater number of borrowers facing foreclosure after having their loans modified.

The Treasury Department says mortgage company Fannie Mae, which helps run the program, provided inaccurate information about borrowers who restructured their loans under the $75 billion program and then missed mortgage payments.

A spokesman says Treasury has hired an outside consultant to review the data.

Analysts at Barclays Capital said the government excluded from the July 20 report around 8,600 borrowers who had already dropped out of the program because they failed to make at least three monthly payments.