Report finds HAMP program to be lacking

TRD 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

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

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

Placeholder image

In shift, Wells Fargo says it will only offer refinances to customers

Placeholder image

Obama extends taxpayer bailouts to housing speculators

FHFA Director Ed DeMarco

Treasury calls on taxpayers to fund principal mortgage reductions

arrow_forward_ios
Loading...