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Gloomy outlook for loan mods

Report: HAMP program doesn't address unemployment

The Obama administration's Home Affordable Modification Program (HAMP) is too focused on subprime loans to head off a projected 10 million to 12 million foreclosure starts that lie ahead if unemployment remains elevated, according to a report by a Congressional Oversight Panel.The panel, created in conjunction with the Troubled Asset Relief Program (TARP) to keep tabs on financial markets and the regulatory system, said that even if the HAMP program meets a goal of facilitating up to 4 million loan modifications, its scope is too narrow to address foreclosures caused by unemployment."The foreclosure crisis has moved beyond subprime mortgages and into the prime mortgage market," the report said. "It increasingly appears that HAMP is targeted at the housing crisis as it existed six months ago, rather than as it exists right now."The report recommended that the U.S. Treasury Department find ways to provide foreclosure mitigation for the unemployed and borrowers with pa...