WASHINGTON ( TheStreet) -- One reason for skepticism about President Obama's latest housing plan unveiled yesterday in Las Vegas lies with the feckless agency charged with administering it.The little-known Federal Housing Finance Agency has a history of laxity and ineptitude in overseeing Fannie Mae and Freddie Mac since its 2008 inception. The agency was created to beef up oversight of the undercapitalized mortgage giants at the beginning of the financial crisis. A month later, it stepped in to place them under conservatorship as the Treasury Department started to pump in $140 billion in bailout money. A series of internal audits have documented FHFA's repeated failures as regulator of the two mortgage resellers, which themselves have missed a series of red flags about foreclosure abuses. FHFA snoozed through numerous reports that law firms in Florida and elsewhere were "robo-signing" inaccurate foreclosure documents, hiding the mistakes from courts, and improperly charging borrowers, the agency inspector general reported last month. The agency also ignored hundreds of consumer complaints of foreclosure fraud and abuse, including some that ultimately led to criminal charges against a mortgage lender. In 2010, the agency let Freddie Mac settle for only $1.35 billion with Bank of America ( BAC) over mortgage repurchase claims. FHFA disregarded a senior examiner's warnings that Freddie might be leaving billions on the table that could be recovered for taxpayers, the inspector general reported. Obama's modest plan for troubled homeowners seeks to spur mortgage refinancing so borrowers who owe more than their homes are worth can take advantage of lower interest rates of around 4%. The revamped Home Affordable Refinance Program, which reached fewer than 1 million borrowers, aims to reduce chances for default and leave homeowners with more money to spend. To qualify, borrowers must have a loan owned or guaranteed by Fannie or Freddie that was taken out before June 1, 2009. Their accounts need to be current, with no late payments during the past six months and no more than one late payment during the past 12 months. Borrowers will be eligible no matter how far their home value has plunged, eliminating the original 125% loan-to-value limit. The new program is intended to reach only a small fraction of borrowers stuck with plummeting home values.