HAMP, the Home Affordable Mortgage Program has been an expensive, miserable failure— and with luck, it’s history. [Hat tip M.R.!]
WASHINGTON — Three leading House Republicans have introduced legislation to repeal the Home Affordable Modification Program, the Obama administration’s signature foreclosure-relief effort, calling it a “colossal failure” and seconding an inspector general report that found the program ultimately left many participating homeowners worse off.
By most objective measures, the diagnosis of failure is a fair one. HAMP has bounced more people than it’s helped and has no hope of reaching its original goal, as stated by President Obama in February 2009, of reducing mortgage payments for 3 to 4 million homeowners — a goal the administration has since disavowed.
As of November, about 774,000 homeowners had dropped out of the Obama administration’s main foreclosure-relief program. That’s about 54 percent of the more than 1.4 million people who applied.
It seems unlikely that there will be a lot of opposition to ending this program. Here’s hoping the administration doesn’t come up with a dumber idea to replace it.