How is the government’s loan modification program going?
For the last year, we have been covering the government loan modification program called Home Affordable Modification Program (HAMP) and long ago labeled it a colossal failure.
Has the performance of HAMP improved? Have servicers finally gotten themselves pulled together enough to stop losing paperwork?
According to ProPublica who crunched the numbers, the program is a worse failure now than ever and it seems the big four servicers (Bank of America, JPMorgan Chase, Wells Fargo and Citi) have the highest failure rates, “despite their economies of scale and allegegded expertise,” notes economist Barry Ritholtz.
Click the images below to enlarge.
Overall, 54.3% of all HAMP modifications have failed which is a margin economists agree indicates overall catastrophic failure. Given that this is a taxpayer funded program, should it continue any longer?
Start spreading the news...
This article published on Friday, February 18th, 2011 at 4:12 pm | Contact the editor
Topics: News
About this Columnist (Full Profile)
Tara Steele is the News Director at AgentGenius, covering real estate news, technology news and everything in between. If you’d like to reach Tara with a question, comment, press release or hot news tip, she frequently checks her email, simply click the link below.
Email Tara Steele
The Daily Hot Sheet
The AGBeat Daily is jam packed with today's news headlines, fresh and neat in your inbox- start the day ahead of the curve.
Comments (7)
Trackback URL | Comments RSS Feed
Social Shares & Links Back
- Real Estate Feeds:
How is the government’s loan modification program going?: For the last year, we have been covering the governmen… http://bit.ly/eujUpv
- RealEstate Babble:
AgentGenius: How is the government’s loan modification program going? http://bit.ly/fWloko Full http://bit.ly/hwCg9u
- kristin terry:
How is the government’s loan modification program going?: For the last year, we have been covering the governmen… http://bit.ly/hg8s43
- realdiggity:
How is the government’s loan modification program going?: comments http://bit.ly/hKCQxY
- Natasha Hall:
How is the government's loan modification program going? – For the last year, we have been covering the government l… http://ow.ly/1boWsW
- Class action lawsuit filed against Wells Fargo for illegal HAMP denial:
[...] Modification Program (HAMP). It was discovered that the $75 billion government funded program failed to grant permanent modifications nearly half of the time, which most consider a failure of the program which [...]
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
Tara Steele
Marti Trewe
Charlene Jimenez
Tara, this facts are sobering, but not surprising. Can I re-blog this? My blog is sfvrealestate.blogspot.com.
As to your question, while I do believe the government needs to be involved in housing finance, I also think that somehow the money shouldn’t flow through the banks. That looks to be the bottleneck.