WASHINGTON (MNI) - In a move designed to encourage more at-risk borrowers to seek help with their mortgages, the U.S. Treasury and the Department of Housing and Urban Development Wednesday announced the launch of a nationwide public advertising campaign to increase awareness about the government's Making Home Affordable Program.

"We want to do all we can to help make sure that struggling homeowners know about these free resources for help," U.S. Treasury Secretary Timothy Geithner said in a statement accompanying the announcement.

The move, in partnership with the Advertising Council, comes as the administration's flagship housing program continues to face criticism for struggling to stem the tide of foreclosures in the U.S. housing market.

In his most recent quarterly report to Congress by Neil Barofsky, said the Home Affordable Modification Program "continues to struggle to achieve its stated original objective."

Despite an increasing array of initiatives under the HAMP that are intended to increase lender participation, Barofsky said, "the number of homeowners being helped through permanent modifications remains anemic, with fewer than 400,000 ongoing permanent modifications."

The Ad Council will distribute the new PSAs to more than 33,000 media outlets nationwide. The campaign includes television, radio, print, out of home and web advertising.

"Many responsible borrowers continue to face challenges due to unemployment, negative equity or because of soaring utility payments," HUD Secretary Shaun Donovan said.

The goal of the PSAs, he said, is to reach at-risk borrowers now while they are still current on their payments and eligible to receive help through either HAMP or refinancing options provided by the Federal Housing Administration.

The PSAs will air in advertising space donated by the media.

** Market News International Washington Bureau: 202-371-2121 **