When a program is badly flawed and not working, the rational thing to do is scrap it. Given that HAMP (Obama’s Home Affordable Mortgage Program), is a complete failure, someone thinking clearly would kill the program.
Instead, president Obama, acting like the typical bureaucrat, wants to massively expand it. Please consider Obama May Prohibit Home-Loan Foreclosures Without HAMP Review.
The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.
The proposal, reviewed by lenders last week on a White House conference call, “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed,” according to a Treasury Department document outlining the plan.
The proposed changes would prohibit lenders from initiating new foreclosure actions before loan screening by HAMP and would require lenders to halt existing proceedings for borrowers once they are in a trial repayment plan.
Program Has Failed
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