ATLANTA --- Hundreds of lenders told federal housing officials Thursday that a $300 billion mortgage aid program requires too many losses for consumers and lenders to realistically help 400,000 Americans avoid foreclosure.

Drawbacks to the government's "Hope for Homeowners" program include requiring lenders to forgive massive portions of defaulting loans and forfeit future equity to the government. Another provision leaves homeowners owing the federal government half the value their home gains years down the road.

"The home is one of your biggest investments in your life. When you take away so much of that equity ... are you really helping the homeowner?" asked Nebraska-based housing counselor Stacy Hlavacek, one of more than 500 lenders and counselors gathered in Atlanta for a two-day conference. The meeting is one of dozens the Federal Housing Administration has planned to publicize the program, which lets troubled homeowners trade risky loans for 30-year fixed rate loans with lower rates.

The program began Oct. 1, and the FHA received just 111 applications during the first month.

Margaret Burns, HUD director of single family program development, defended it, saying, "When we talk to the lending community, we don't feel (the losses are) the biggest impediment."

Lenders criticized nuanced requirements that are both tough to enforce and block many of the homeowners the program's supposed to help.

For example, lenders must dig up two years' worth of financial records to prove borrowers haven't intentionally defaulted on loans or lied about their income in the past.

Passed by Congress this summer as part of a massive housing bill, the program aims to replace an old loan with a new one at 90 percent of the current value of the home. Lenders absorb the difference, whether it's $600 or $60,000.

Consumers have to pay higher than normal FHA insurance premiums, agree to share the remaining 10 percent equity with the government, and split future appreciation on the home 50-50.