More than 40 percent of homeowners seeking help from the Obama administration's flagship effort to rescue those at risk of foreclosure have dropped out of the program.

What does 40% translate to? More than half a million borrowers, apparently; and Mark Oracle (link above) has a good old laugh at the reason why. Apparently, the Government "pressured banks to sign up borrowers without insisting first on proof of their income"; and when the banks finally got around to the necessary diligence, they found they were dealing with sub, sub, sub-prime loans, in which borrowers weren't barely missing payments... they simply didn't have any money. The danger now, according MO, is a giant wave of foreclosures in the second half of 2010.

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