Over the past few weeks Republicans in Congress have led efforts to eliminate four foreclosure alternative and prevention plans, saying that they are doing more harm than good. Many experts agree with them, since programs like HAMP have dramatically underperformed while still effectively using millions or even billions of taxpayer money. The Department of Housing and Urban Development, however, believes that these programs are doing their jobs, providing “relief to tens of thousands of families who are still struggling to make ends meet after the deepest economic recession and housing crisis in a generation”[1].
Given that HAMP alone was projected to help three to four million people, tens of thousands seems like something of a letdown, particularly when you factor in that Neil Barofsky, special inspector general for the TARP program and HAMP watchdog, has publicly stated that “the program may be causing more harm than good”[2]. Barofsky has since resigned his position, saying that “it is absolutely heartbreaking the number of families that are not being reached by this program [HAMP].”
Since the Obama administration has publicly stated that it will veto any bill terminating HAMP, NSP (Neighborhood Stabilization Program), the Emergency Homeowner Relief Program or the FHA Short Refi Program – all of which are in congressional crosshairs for failing to adequately help homeowners while burning through taxpayer funds – the entire argument may be moot once the bills pass the house and move on to the senate. Do you think that if these termination bills can pass the Democrat-dominated senate that Obama should veto them?
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[1] http://www.totalmortgage.com/blog/mortgage-rates/hud-fights-back-over-efforts-to-kill-hamp-foreclosure-prevention-programs/10956
[2] http://www.housingwire.com/2011/03/01/sigtarps-support-for-hamp-all-but-exhausted
If you think about it, wouldn’t it be better to let the investors buy and flip out these short-sales,and delinquent notes with the banks taking the hits….The write offs would be paid from the money the banks bilked investors out of from selling fraudulent securitizations… Overall they still will have made billions of profit even after the writoffs. These govt programs are like sludge in a gear. The 80′s S&L crisis was cleaned up in short order with investors help. After all, the whole cycle is one huge fix anyway with the odds clearly against the average homeowners..
Yes, I do think Obama should veto eliminating these programs. They helped some people. So what that they didn’t help tens of thousands of families. If they reached and helped one family then good, let’s keep them in there. How about improving on them instead of eliminating them.