HAMP Loan Modification Program Results Continue To Be Underwhelming


The Treasury released its latest set of numbers today for the Home Affordable Modification Program (HAMP) through April, 2010.  According to the Treasury, 300,000 American homeowners have received permanent loan modifications under HAMP. This number has grown in recent months and that is good news. However, in light of the fact that foreclosures have continued at a rate that exceeds 300,000 for the 14th month and counting, the number of homeowners who have received help remains miniscule when compared to the number of homeowners who have lost their homes.


It is clear that HAMP, as it is currently structured, will not stop the foreclosure crisis and that crisis is continuing to have negative effects on the economy. Localities continue to face declines in property tax revenues, which in turn affect local schools. Housing values, especially in some of the areas hardest hit by foreclosure, continue to decline. As more and more Americans lose equity in the only asset they own,  and as the “shadow inventory” of foreclosures looms, we face the potential of another shock to our economy that will doom whatever budding recovery may be in progress.

I’ve said it before and I’ll say it again: HAMP needs teeth. Whether you do it the easy way by simply allowing judges to modify loans on primary residences in a Chapter 13 bankruptcy or you enact legislation that requires lenders and servicers to participate in HAMP with strict monitoring and tight timelines, it must be done. If not,  the results will continue to be less than impressive and will not do a thing to stop this crisis.

I’m not some slick lobbyist from the financial services industry or even a consumer group lobbyist. I am simply a concerned American, and in that capacity I call on the Obama Administration and members of Congress to put some teeth in HAMP as I’ve outlined above. 

If you’re concerned about this, I urge you to call your Congressional representative, your Senator, and write to President Obama. Better yet, call them. Let them know much more needs to be done!

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