The Obama administration's latest foreclosure prevention plan got an A for effort from most observers, who said it targets the right group of borrowers — the unemployed and those whose mortgages exceed the value of their home.

But consumer groups and industry analysts alike said the proposed changes will do little to address a still cumbersome process, investor resistance and continued second-lien hurdles. The plan is a "real paradigm shift in how they are approaching foreclosure prevention," said Julia Gordon, senior policy counsel for the Center for Responsible Lending. "But so far with the administration's efforts we've seen a real problem on the implementation side."

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