Loan Modification

HAMP Program Failing Miserably in 2010

By Carmen Dellutri

Approximately 16 months ago, President Obama made a pledge to help 7 to 9 million families avoid foreclosure.  Well, the most recent statistics for May 2010 have been released and the statistics confirm that the HAMP program is failing miserably.  Since that time, more people have been kicked out of the program (over 435,000 families) than have received permanent relief (approximately 339,000 families).

More specifically, it appears that in the last month, 5 times as many families were kicked out of the program than were granted new relief.  I’m not sure how this happens in a period of economic recovery.  Hmmm.

Interestingly, the Obama Administration had a positive spin on the matter.  The administration states that housing is in much better shape now than when they took office.  Really, that’s it.

If you recall, the Administration threw $75 Billion at the problem to help distressed borrowers.  The question that should be asked is:  Where did the money go?  Did it go to help distressed homeowners?  To the Banks?  In someone’s pocket?  To the mortgage servicers?

Overall, I would give this program an F.  It has failed to perform in any meaningful way.  It has failed to help the very people who need help the most.  It has failed to stop the foreclosure problem.   The administration should put a fork in HAMP because it is done.

Related posts:

1. TARP and HAMP Require That Foreclosure Be Suspended
2. Texas Attorney General Begins Restitution Program for Countrywide Customers
3. HAMP Helping, But Too Few, Too Slow

Full post as published by Mortgage Law Network on August 28, 2010 (boomark / email).