Lest there be any confusion, the Obama administration firmly stated yesterday that “President Barack Obama would veto a Republican-backed bill killing his signature mortgage foreclosure prevention program”[1]. In a statement from the administration, it was stated that the Obama administration “strongly opposes” House action to eliminate HAMP” and that the president’s “senior advisors would recommend that he veto the bill”[2].
While the efforts to terminate HAMP and other foreclosure prevention measures are largely a Republican initiative as they seek to weed out unnecessary spending in the federal budget, both sides of the aisle have parties in agreement that HAMP in particular is doing more harm than good, as former inspector general of TARP, Neil Barofsky, testified earlier this year before stepping down from his post. George Miller, (D-CA), called HAMP “an arbitrary, capricious system that kicks hard-working people out on the street,” adding that “the administration cannot allow this to continue.” Republicans agree, and also add that the program has been so incredibly inefficient – helping only about half a million Americans instead of the projected three- or four million into new loans that many have defaulted on – that it cannot be allowed to continue.
Secretary of the Treasury, Timothy Geithner, has said that ending the HAMP program could do significant damage to the housing market. Do you agree that HAMP must be maintained for the housing market to recover?
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[1] http://kgmi.com/Obama-would-veto-bill-killing-foreclosure-preventi/9410648
[2] http://blogs.abcnews.com/politicalpunch/2011/03/obama-administration-issues-veto-threat-against-bill-to-end-controversial-hamp-housing-program.html
HAMP although well intended, has failed. It only worked on paper.
The programs are messing the market more than helping. Even after the recent $8,000 tax incentive has hurt certain ranges. They had a quick fix removing many buyers that would of came on the market gradually over time. The HAMP program is a joke. It hasn’t helped anybody but the deep pockets. Even after INDY Mac being sold through the FDIC the only ones being rewaded is the idiots that caused it, Paulson boys. Enjoy the profits the select few, as you would not beleive how much greed and corruption has caused on the average joe who is trying to put food on the table. Don’t worry if we have a roof over our heads. As long as you guys are rich the rest is ok.
The whole program was foolish from the word go. Lenders actually told people to quit making their monthly payments so they would qualify for the modification. Then they never got them modified which resulted in a borrower that had never been late on his mortgage no longer being qualified for a regular refinance program because they listened to their lender. These morons remind me of my grandad’s quote, ” Two people take the back off a watch. One is a watch repairman and the other is a damn fool.” We have had far too much application of the “Law of Unintended Consequences” by people manipulating the market for political gain.
i can not fathom the incredibly stupid comments coming from supposedly educated and capable governmental leaders… this suspension of disbelief approach is mind-numbingly stupid… we will continue to drain the coffers of capable and responsible homeowners, in order to supplement the housing costs of people who have no business in homes that are two and three times as costly as those homes they could ever legitimately afford… in other words, they’re buying homes and votes with this wasteful delay in allowing the market to stabilize on real numbers… and we will not stabilize housing until we remove the last traces of artificial price supports… we must foreclose, adjust the price down, by approximately 1/3 and remarket the homes to the open market, including a brief window of opportunity to the former owners during which they have a chance to obtain “legitimate financing”… NO MORE SOCIAL ENGINEERING… as long as we allow the morons of corrupt governmental leadership to continue doing business with their heads in, lets say the sand, under the totally false premise that they are protecting home values, there will be no means of establishing a valid basis of evaluation, and we will remain in limbo into perpetuity… look, the clowns that set this whole fiasco up, and it WAS intentional, are counting on the loud, self serving voices of the thought deprived entitlement junkies to support the continued dismantling of the foundation of our national wealth, home ownership…