Industry NewsMortgage

HAMP under fire despite signs of success

Critics: too few borrowers get permanent loan mods

Early data shows permanent loan modifications granted by lenders under the Home Affordable Modification Program (HAMP) are performing well over time, with nine out of 10 borrowers granted modifications still in the program nine months later.But critics say far too few borrowers have been able to obtain permanant HAMP modifications, and that the Obama administration has been unwilling to recognize the program's shortcomings.  In its latest report detailing HAMP performance through September, the Treasury Department said that after nine months, 11 percent of borrowers granted permanent loan modifications had redefaulted, missing three or more consecutive payments. Another 4.6 percent had missed two or more payments but hadn't been disqualified from the program.The numbers are preliminary, because while nearly 500,000 borrowers had been granted permanent HAMP loan modifications, only 55,957 of those modifications had undergone nine months of "seasoning" at the end of September....