A lack of comprehensive planning by the Treasury Department and an inability to enlist servicer participation has stymied a federal program that provided billions in borrower assistance to state housing agencies, according to an inspector general's report.

The report, released early Thursday morning by the Special Inspector General (IG) for the Troubled Asset Relief Program (TARP), found that the so-called 'Hardest Hit Fund' has been mired in delays and distributed only a fraction of the funds available to struggling homeowners.

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