Summary Box: Bailout watchdog to probe how states chosen for $2.1B housing aid program

Summary Box: Watchdog to audit housing program

HOUSING AUDIT PLANNED: Financial bailout watchdog Neil Barofsky will examine how 10 states were selected for a $2.1 billion Obama administration plan to assist areas hit by the housing bust.

STATE EFFORTS VARY: State agencies have designed their own approaches and applied for Treasury Department funding. Many provide aid to unemployed homeowners, or those who owe more on their properties than their homes are worth.

EXAMINING PROGAMS: Barofsky will look at whether the administration has established ways to prevent waste and fraud, or to measure the programs’ performance.