If everything goes according to plan, mortgage companies will find themselves under intense government scrutiny. The Department of Treasury said it plans to keep a close eye on how these financial institutions treat borrowers.

Treasury Secretary Timothy Geithner told a Senate appropriations committee that the government is considering rating the services being provided by mortgage companies to its customers as part of a $75-billion foreclosure relief effort to help struggling homeowners. He said an in-depth report on these lending institutions is expected to be released in July. The move came amid reports that many lenders are “not responding to the needs of responsible and increasingly desperate homeowners.”

The treasury secretary said companies that will receive poor ratings will be forced to make repayments. In addition, lenders that are found guilty of not doing their job of helping cash-strapped homeowners will not receive incentives from the Obama administration.

Geithner also expressed displeasure over mortgage companies that are taking advantage of the plight of their customers. “We do not believe servicers are doing enough to help homeowners – not doing enough to help them navigate the difficult and frightening process of avoiding foreclosure,” he said, adding that “none of these are acceptable.”

Meanwhile, many experts believe that the $75-billion foreclosure relief program is not enough to curb the growing number of foreclosed homes in the country. “Families are tragically being foreclosed on when foreclosure was preventable,” Congressional Oversight Panel member Richard Neiman said.

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