Tim Iacono submits: Among the many other less-than-desirable features of the mortgage modification program known as HAMP (Home Affordable Modification Program) is the revelation that, according to this AP report, your credit score will probably be lo
Back when the Executive and Congress at least pretended not to abdicate all power to the Fed, one of the centerpiece programs designed to boost the housing market for the benefit of the poor (as opposed to letting Ben Bernanke make marginal US housing a rental industry owned by a handful of private equity firms and hedge funds), was Barack Obama's Home Affordable Modification Program (or HAMP), which attempted to prevent foreclosures by lowering distressed borrowers’ mortgage payments.
Inquiring minds are digging into a Fed white paper regarding The U.S. Housing Market: Current Conditions and Policy Considerations.
Here are a couple of key snips. The bold headings are mine.
Overriding Private Contract Rights
Paco Ahlgren submits: For months, I’ve been hearing all measures of horror stories regarding Obama’s so-called “Home Affordable Modification Program” (HAMP). The purpose of the program was to provide $75 billion to subsidize lenders who discharged mortgage loan modifications for troubled debt — through interest rate reductions, loan repayment extensions, and/or principle deferrals for up to five years.
AP - A look at the loan servicers in Treasury's mortgage-modification program, the taxpayer money they could receive and the percentage of eligible loans they've offered to modify so far. The servicers will keep some of Treasury's money and will pass some of it on to investors and homeowners. (Modification figures are not available for some servicers because they joined the program too recently.)