The Obama Administration Hamp program was originally advertised as a program that would help 3 to 4 million homeowners modify their bank mortgage loans.
Has Mortgage Loan Modification Worked?
To say that it hasn’t worked out that way is to dramatically understate the problem.
Arthur Delaney, in Obama Administration’s Foreclosure Program Shambles Along, provides statistics demonstrating how many homeowners who were looking for mortgage help with mortgage modification of their bank mortgage loans made their situation worse by seeking help from the HAMP program.
The Real Problem With Bank Mortgage Loans
The heart of the problem is succinctly stated in these words by Prentiss Cox.
“The fundamental flaw from the beginning was presuming the people who caused the mortgage crisis were somehow going to act in the public interest,” said Prentiss Cox, a law professor at the University of Minnesota. “What was needed was, ‘We just bailed you out with a trillion dollars and in return we’re going to hit you in the head with a two-by-four if you don’t [act in the public interest] Obama Administration’s Foreclosure Program Shambles Along.
This is as clear a statement as possible that the mortgage lending practices of banks are the real cause of the mortgage crisis, and up to this point, the banks have only enriched themselves with public money rather than providing genuine mortgage help for people facing foreclosure.