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WASHINGTON (Reuters) – The House of Representatives on Tuesday voted to kill President Barack Obama's mode information to hold struggling homeowners avoid foreclosure.

A calculate to terminate the information was authorised on a 252-170 vote. But the calculate is implausible to country the Senate.

It was the terminal in information of four measures brought nervy by new empowered House Republicans to modify polity resource for homeowners perceive by the housing crisis.

Republicans argued the foreclosure hindrance plan, famous as the Home Affordable Modification Program, is ineffective and not commendable of taxpayer hold amid soaring budget deficits. The balloting broke mostly along band lines.

The program, which offers incentives for lenders to modify loans, was launched to great melody in the spring of 2009. The Obama administration had hoped it would permanently lower mortgage payments for 3 meg to 4 meg homeowners.

But fewer than 600,000 borrowers hit conventional permanent give modifications, and the information has been widely criticized as ineffective from critics on both the mitt and the right.

"The HAMP information is a failure," said Representative Apostle McHenry, the North Carolina politico who sponsored the bill. "If we can't decimate this unsuccessful program, what information crapper we eliminate?"

Analysts wager the votes as an effort by Republicans, who terminal seized curb of the House in an election in November with an anti-bailout, anti-spending message, to score points with their political base.

The White House has already threatened to veto the measure. However, it is implausible to become to that since Democrats, who retained curb of the Senate, mostly opposed the measure. Both the House and senate would hit to okay the calculate for it to accomplish the president's desk.

About $30 1000000000 has been ordered divagation for the information from the government's $700 1000000000 financial delivery fund, but exclusive most $1 1000000000 of that has been spent so far.

Democrats argued the information should be fixed, not killed.

"The epilepsy of whatever information leaves grouping worse off," said Representative Barney Frank, the crowning Democrat on the House Financial Services Committee.

Even as the Obama administration argues for keeping HAMP in place, it is pressing nervy on a removed track that could termination in such large assistance for struggling homeowners.

Big U.S. banks are gathering with federal officials and land attorneys generalized at the Justice Department on weekday as they handle what could turn into a multi-billion note deciding over questionable abuses by the companies that amass mortgage payments.

The banks and authorities are due to handle a deciding offering that the land officials sent out early this month, which titled on banks to impact borrowers meliorate and to reduce give balances for whatever struggling homeowners.

A assemble of 50 land attorneys generalized and most a dozen federal agencies are inquiring bank mortgage practices that came to light terminal year, including the use of "robo-signers" to clew hundreds of unread foreclosure documents a day.

On March 3, land attorneys generalized directive the enquiry sent banks the outline of a planned deciding endorsed by whatever federal agencies, including the Justice Department, the Housing and Urban Development Department and Treasury staff setting up the Consumer Financial Protection Bureau.

The banks that conventional the offering and that will hit representatives at Wednesday's gathering are Bank of USA Corp, JPMorgan Chase & Co, Citigroup Inc, Wells Fargo & Co and Ally Financial, according to sources briefed on the meeting.

(Additional reporting by Dave Clarke; Editing by Carol Bishopric)

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