Home Affordable Mortgage Program fails miserably
HAMP continues to fail
Here at Agent Genius, many articles have been written regarding the failure of the Home Affordable Modification Program (HAMP) and today’s report released by Fitch Ratings shows that 65%-75% of loans modified through HAMP default.
On the heels of HAMP’s various other failures, the core mission to help struggling homeowners seems to be effective a mere 25%-35% of the time (that is after the few applicants that make it through the mounds of red tape and whose paperwork is not lost).
According to CNN, the Fitch report points to HAMP’s failure being that most applicants struggle with all of their debts, not just mortgage, and borrower behavior continues regardless of help. The report notes that “on average, HAMP-modified borrowers have 64% of their monthly pretax income spent before they even buy a quart of milk.”
Helping homeowners
The report calls for the administration to help with all debt and although I continue to see HAMP as a colossal failure and I don’t personally support the program, I think the core mission of HAMP has the potential to help and I feel that the administration giving an overall debt relief package to struggling homeowners won’t fix anything.
HAMP could include debt counseling as an option for their modification plans, but HAMP has bigger problems than borrower behavior if only 25% of applicants don’t default. Can you imagine what would happen to a lender if 75% of all of their loans defaulted?
If HAMP continues to fail, what do you think the government could do to help struggling homeowners? Or do you think the market should level out naturally without government assistance?
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This article published on Thursday, June 17th, 2010 at 12:54 am | Contact the editor
Topics: Editorials
About this Columnist (Full Profile)
AGBeat Editor-in-Chief: Lani, named one of Real Estate’s 100 Most Influential, as well as 12 Most Influential Women in Real Estate, is a business writer hailing from the great state of Texas in the city of Austin. As a digital native, Lani is immersed not only in advanced technologies and new media, but is also a stats nerd often burried in piles of reports. Lani is a proven leader, thoughtful speaker, and vested partner at AGBeat.
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- Real Estate Feeds:
Home Affordable Mortgage Program fails miserably: HAMP continues to fail
Here at Agent Genius, many articles have … http://bit.ly/8YKREh - SemperFiHomes.com:
RT @RealEstateBabbl: AgentGenius: Home Affordable Mortgage Program fails miserably http://bit.ly/9vRAMq Full http://bit.ly/a7ZlUb
- AgentGenius:
#agnow They're just kicking the can down the road, hoping to inject a steady stream of foreclosures into the market… http://bit.ly/ajjLHh
- Carole Sanek:
@agentgenius Home Affordable Mortgage Program fails miserably http://bit.ly/bOJISt
- Castle Dream RE LLC:
@agentgenius Home Affordable Mortgage Program fails miserably http://bit.ly/bOJISt
- AgentGenius:
#agnow Really Mortgage Program looks good on paper,but fails miserably in practical application.Very sad.. http://bit.ly/ajjLHh
- AgentGenius:
#agnow The government could help struggling homeowners by letting them suffer the consequences of their actions. A… http://bit.ly/ajjLHh
- Tom Lyons:
Home Affordable Mortgage Program fails miserably – HAMP continues to fail
Here at Agent Genius, many articles… http://tinyurl.com/27w6kyg - Geoffrey Boyd:
HAMP failing miserably – via @agentgenious. http://bit.ly/bro0Aq #Mortgage #HAMP | Visit us at http://www.mortgageproblog.com
- Geoffrey Boyd:
HAMP failing miserably – via @agentgenius. http://bit.ly/bro0Aq #Mortgage #HAMP | Visit us at http://bit.ly/cZmMmq
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[...] ) Home Affordable Mortgage Program fails miserably. The title says it all. The stats are even more telling in that 65%-75% of HAMP loan mods default [...]
- AgentGenius:
#agnow [...] ) Home Affordable Mortgage Program fails miserably. The title says it all. The stats are even more tel… http://bit.ly/ajjLHh
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
Tara Steele
Marti Trewe
Charlene Jimenez
Really Mortgage Program looks good on paper,but fails miserably in practical application.Very sad..
They’re just kicking the can down the road, hoping to inject a steady stream of foreclosures into the market, rather than a deluge at one time. It’s my belief that was the plan all along – look at the failure rate of low-income mortgage programs? You couldn’t see this coming?
Navy Chief, Navy Pride
The government could help struggling homeowners by letting them suffer the consequences of their actions. As a politicians, the administration could call it an “Education Initiative for Struggling Homeowners.”