Report finds HAMP program to be lacking

Miami /
Dec.December 14, 2010 04:17 PM

A government evaluation of the Home Affordable Modification Program found it once again to be lacking, according to CNN. HAMP has undergone tweaks since it was introduced in April, but in a recent report, the Congressional Oversight Panel found little improvement in its performance. Instead of helping close to 4 million struggling mortgage borrowers keep their homes, HAMP will prevent only about 700,000 to 800,000 foreclosures. “I think the program has turned out to be a lot smaller and have a lot less impact than we thought it would,” said Ted Kaufman, the former U.S. senator from Delaware who is now chairman of the Congressional Oversight Panel. Since the Treasury Department lost the authority to further restructure the program at the end of October, banks are now offering more modifications through their own process rather than through the government’s. Among the reasons cited in the report for the program’s failure were that servicers were preventing or delaying modifications, and that many loans in trouble often came burdened with second mortgages, causing many banks to refuse to sign off unless they were paid. [CNN]


Related Articles

arrow_forward_ios
According to ATTOM Data Solutions, the all-cash share of South Florida home sales peaked at 72 percent in 2011.
Cash deals drop to 46% of South Florida home sales
Cash deals drop to 46% of South Florida home sales
IRS closes off remaining REIT spinoff loophole
IRS closes off remaining REIT spinoff loophole
IRS closes off remaining REIT spinoff loophole
Rabideau Law Firm reported 681 mortgages above $1 million in Palm Beach County in the year ended in March.
Banks reject 72% of applicants under HAMP program
Banks reject 72% of applicants under HAMP program
Obama’s foreclosure program not impacting most modified home loans
Obama’s foreclosure program not impacting most modified home loans
Obama’s foreclosure program not impacting most modified home loans
Obama’s home loan modification program just surpasses skeptical expectations
Obama’s home loan modification program just surpasses skeptical expectations
Obama’s home loan modification program just surpasses skeptical expectations
Placeholder image
In shift, Wells Fargo says it will only offer refinances to customers
In shift, Wells Fargo says it will only offer refinances to customers
Placeholder image
Obama extends taxpayer bailouts to housing speculators
Obama extends taxpayer bailouts to housing speculators
FHFA Director Ed DeMarco
Treasury calls on taxpayers to fund principal mortgage reductions
Treasury calls on taxpayers to fund principal mortgage reductions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...