Even with the foreclosure moratoriums that a few of the nation’s biggest banks instituted following the robo-signing scandal, foreclosures for this year will likely top one million. According to a report released yesterday by the Office of the Comptroller of the Currency and the Office of Thrift Supervision — two of the federal bank regulators — foreclosure activities were up significantly in the last quarter:

The number of new foreclosures increased to more than 382,000 — 31.2 percent more than in the previous quarter and 3.7 percent more than a year earlier. The number of foreclosures in process increased to 1.2 million — 4.5 percent more than in the previous quarter and 10.1 percent more than a year earlier. The number of completed foreclosures also increased to nearly 187,000 — 14.7 percent more than in the previous quarter and 57.5 percent more than a year earlier.

A large reason for the jump, according to the report, is that mortgage modifications under the Home Affordable Modification Program (HAMP) — the Obama administration’s signature foreclosure prevention effort — have dropped significantly. Mark Zandi, chief economist of Moody’s Analytics, said that a main problem driving the foreclosure machine is the “inadequacy of loan modification programs”.

For months, it’s been apparent that HAMP and the administration’s other programs designed to keep borrowers in their homes are going to fall woefully short of their goals. HAMP has processed only about 500,000 permanent loan modifications, out of 1.4 million trial modifications that have been initiated. The redefault rate (the number of borrowers who again fall behind on their mortgages, post-modification) for the program is an ugly 21 percent.

The Congressional Budget Office estimates that just $12 billion of the $50 billion dedicated to foreclosure prevention will be spent. The Congressional Oversight Panel for TARP, which also oversees HAMP, estimates that at the current rate HAMP will only benefit 700,000 homeowners, far less than the 3-4 million that the Obama administration said would receive aid. “Absent a dramatic and unexpected increase in HAMP enrollment, many billions of dollars set aside for foreclosure mitigation may well be left unused. As a result, an untold number of borrowers may go without help,” the panel said in a report.

There are still plenty of things that can be done to fix HAMP and ensure that the full resources dedicated to foreclosure prevention actually wind up in the hands of homeowners. Here are some recommendations.

The incoming Republican majority in the House of Representatives has laid out a series of changes it would like to make to the House rules, including replacing the current “pay-go” rules — which require all spending increases to be offset with spending cuts or tax increases — with a rule called “cut-go,” which requires that new spending programs — but not new tax cuts — be offset with spending cuts. The GOP has also proposed a new rule requiring that each piece of new legislation include a statement justifying the legislation’s constitutionality.

That’s not all, however. As National Journal reported today, “a little-noticed detail in the new rules proposed by House GOP leaders would greatly increase the power of Rep. Paul Ryan, R-Wis., the incoming chairman of the House Budget Committee.” Indeed, under the proposed rules, if the House and Senate do not agree on a budget resolution (a distinct possibility with a divided Congress), Ryan will be able to unilaterally set spending levels that are binding on the House, and any attempt to lessen the impact of these cuts can be ruled out of order.

The Center on Budget and Policy Priorities called the proposed change “stunning and unprecedented“:

This rule change has immediate, far-reaching implications. It means that by voting to adopt the proposed new rules on January 5, a vote on which party discipline will be strictly enforced, the House could effectively be adopting a budget resolution and limits for appropriations bills that it has never even seen, much less debated and had an opportunity to amend. (There is no requirement for Representative Ryan to make his proposed spending and revenue limits available to Members or the public before the vote on the new rules.)…Once Rep. Ryan places in the Congressional Record discretionary funding limits set at the [2008] level, they will become binding on the House, and any attempt to provide funding levels that allow for less severe cuts will be out of order.

Ryan, of course, has gained notoriety for his radical “Roadmap for America’s Future,” which purports to balance the budget by essentially privatizing both Social Security and Medicare, while the House GOP’s much-ballyhooed “Pledge to America” includes a promise to reduce non-defense discretionary spending to the 2008 level. If adopted, an across-the-board cut to 2008 levels would entail severe reductions in important and popular programs like Pell Grants and federal highway funding.

The proposed change also seems to fly in the face of the GOP’s promise to end backroom deals and increase transparency, as with one vote, the GOP House may yoke itself to a budget that has never been made public.

Cross-posted on ThinkProgress.