>>"The U.S. Treasury Department needs to do more to learn why more than a quarter of the borrowers in a federal mortgage workout program have re-defaulted, costing taxpayers at least $815 million, according to an audit report released today."

>>>Over 306,000 of the 1.2M delinquent homeowners who have received loan modifications under the Home Affordable Modification Program (HAMP) since it was introduced in 2009 have re-defaulted, an audit shows. The cost to the taxpayer is $815M. "Treasury does not understand and the servicers do not understand why homeowners are falling out," says Christy Romero, the Special Inspector General for the Troubled Asset Relief Program.

>> U.S. Bankruptcy Judge Steven Rhodes is due to hold a hearing over Detroit's bankruptcy filing today, when the city will request confirmation of its immunity to lawsuits, as well as protection for Michigan Governor Rick Snyder, State Treasurer Andy Dillon, Emergency Manager Kevyn Orr and others. Those against the request, such as Detroit workers, retirees and pension funds, argue that the bankruptcy filing breaches Michigan's constitution.