AgentMortgage

The truth about HAMP

Servicers share blame for some failed loan mods

Over the course of President Barack Obama's first year in office, one of the priorities of his administration has been to stabilize the residential housing market. And there have been some signs of success, such as home prices finally touching bottom in a number of cities across the country. Despite these salubrious data points, it's fairly obvious the residential sector remains troubled, as foreclosures and defaults continue to sweep across the nation. In short, more and more homeowners are still losing their homes. The intransigence of the foreclosure and default problems has so far defied the best efforts of lenders to work their way out of the mess. All this becomes obvious when we look at recent statistics from the government's own Home Affordable Modification Program (HAMP). As of January, more than 900,000 homeowners were in "temporary" trial loan modification plans, but mortgage servicers had managed to convert only about 63,000, or 7 percent, of the tempo...

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