HAMP Crashing

Treasury’s latest report on the administration’s Home Affordable Modification Program (HAMP) showed a 16 percent drop-off in permanent modifications completed during September, with over half of the 1.36 million trial plans started already canceled from the program, and 11 percent of borrowers re-defaulting on their new loan. The TARP special inspector general told Congress that HAMP is "failing to meet its goal of preserving homeownership" and risks igniting public anger and mistrust. A Fed economist says HAMP is a reflection of the Obama administration's "failed policies," and the government must be prepared to "pay lenders a lot of money" to modify loans.