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Treasury marks the one millionth HAMP failure

Although improving with current changes in guidelines, HAMP hits a troubling milestone, and it is not projected the program will meet anywhere near the 3 to 4 million permanent modifications originally promised.

HAMP failures continue

According to the U.S. Treasury Department, the Home Affordable Modification Program (HAMP) has surpassed its one millionth trial or permanent mortgage modification between June 2010 and July 2012. The Treasury reports that 770,834 borrowers either did not qualify for the program during that period, or failed to finish a 90 day trial. Additionally, 229,185 permanent modifications redefaulted after making the first three consecutive monthly payments during their trial process.

Although notable that over one million homeowners made it through the trial stage, only around 825,000 active permanent modifications remain active today. Another troubling sign for the HAMP program is a drop in successful modification trials, falling to only 16,767 in July after a monthly average of 25,000 per month in 2011.

HAMP has undergone a recent expansion, which has not yet been measured, and could improve the success rate of the program, but the Treasury report indicates the program will not meet the three to four million permanent modifications projected at the program’s launch.

One in three trails failed

The Treasury reports that one in three HAMP trails failed and permanent modifications are typically modified through another program, and nearly 16 percent of all trials end in foreclosure.

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On the flip side, the report notes that servicers were improving their performance under HAMP, and the Treasury disputed under two percent of all servicers’ decisions regarding HAMP in the second quarter, compared to an average of seven percent for some servicers like Ocwen Financial.

Politicians and HAMP

Republican Presidential nominee Mitt Romney has taken on the HAMP guidelines, equating them to little more than “alphabet soup,” while Treasury Assistant Secretary for Financial Stability Tim Massad defended the guidelines, as the current administration has since its inception.

Massad noted, “By shining a spotlight on individual servicer performance in key areas, and requiring improvements through our compliance process, the nation’s largest mortgage servicers are fixing their processes while being held publicly accountable.”

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Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.



  1. Edwinaz3rtznp

    September 17, 2012 at 7:39 am


  2. Alan R. Sims

    September 18, 2012 at 9:35 pm

    Great post!!

  3. cmoneyspinner

    September 25, 2012 at 4:03 pm

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