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?
Judy Graff
February 18, 2011 at 9:27 pm
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.