Big fat HAMP
The Obama Administration has had a rough go of the Home Affordability Modification Program (HAMP) which continues to be scrutinized and Democrats and Republicans alike call it a failure. This $75 billion program designed to lower borrowers’ monthly payments by reducing mortgage rates and extending loan terms has failed to get even CLOSE to touching the four to five million homeowners that the administration projected HAMP would help (FHFA projects only 220,000 homeowners have received help since the program began).
In true political fashion, if you fail to meet a goal, just move the goal post, right? This week, FHFA announced that HAMP would be extended through June 30, 2011 instead of the originally scheduled in of June 10, 2010.
The idea is sound that homeowners that owe up to 25% more than their homes are worth to refinance at lower interest rates, but the red tape, alleged frequently lost paperwork, poor oversight and the inappropriately long wait time have kept hundreds of thousands of applicants from getting the help they are seeking.
So, if a program is failing horrendously and barely limping along as it is, shouldn’t it just be put out of its misery?