HAMP Program Still Not Working

HAMP Program Still Not Working

President Obama is once again disappointed with the banks. Earlier this month, the administration shared its most recent report for HAMP’s performance, and it isn’t good. As a result, the administration also announced that it would continue to withhold payments from two of the banks involved in running the program.

Not sure what HAMP is? The Home Affordable Modification Program launched back in early 2009 and is a program overseen by the Treasury Department that is intended to prevent foreclosures in the first place and therefore keep families from moving from their homes. Though the program is over two years old, it doesn’t seem to be working very well.

In July 2011, only 14,000 homeowners received their trial modifications – that’s the lowest number since the start of the program. At that rate, how is the program supposed to work? How will this stop people from having to relocate from their homes because of bad bank deals?

In addition to reporting such low numbers for HAMP modifications, the Obama administration also shared its review of those mortgage companies and financial institutions that handle the mortgages. It has been reported that Bank of America and JP Morgan Chase haven’t improved in the way they handle the mortgages and that the government decided not to distribute their incentive payments.

Maybe that will get the banks moving in the right direction.

The government is pleased that HAMP is helping those homeowners that have already received the modified mortgages but it believes that tens of thousands of other homeowners can also benefit from the program.

Do you know anyone that has benefited from the HAMP program? What do you think?

Jon Huser