WASHINGTON (AP) -- A watchdog panel overseeing the financial bailouts says a key Obama administration mortgage aid program will help only one in six families facing foreclosure.

The Congressional Oversight Panel says in a report Wednesday that the administration's plan lags well behind the foreclosure crisis.

The program gives mortgage investors and collection companies incentives to reduce borrowers' monthly payments. The Treasury Department says 230,000 homeowners have completed the application process and received permanent loan modifications. It says another 108,000 have been offered modifications but have not yet accepted them.

Panel chairman Elizabeth Warren says the program risks wasting billions of taxpayer dollars if the new monthly payments remain too high.

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