The Obama administration meets every problem by doing what it does best: throw taxpayers’ money at it and then lean on private companies to ‘help out’.

From Administration plans new efforts on foreclosures :

WASHINGTON (AP) — The Obama administration, battling a foreclosure crisis that shows no signs of relenting, will step up pressure on mortgage companies to do more to help people remain in their homes, officials said Saturday.

The administration will announce its expanded program on Monday, Treasury spokeswoman Meg Reilly said.

“We are taking additional steps to enhance servicer transparency and accountability,” Reilly said. She said the goal was to increase the rate that troubled home loans were converted into new loans with lower monthly payments.

The companies will receive $1000/year/loan to refinance loans. High unemployment is extending the home mortgage default problem in previously-safe borrowers. One report said 14% of homeowners with mortgages are behind on their payments.

The Congressional Oversight Panel, a committee that monitors spending under Treasury’s bailout program, concluded in a report last month that foreclosures are now threatening families who took out conventional, fixed-rate mortgages and put down payments of 10 to 20 percent on homes that would have been within their means in a normal market.