Redefaults among assisted borrowers rising at 'alarming rate'

More than 1 in 4 homeowners who have received permanent mortgage modifications under the Home Affordable Modification Program (HAMP), the government’s flagship mortgage relief program, have redefaulted, according to a quarterly report to Congress cited by DSNews.com.

The failed HAMP workouts that received funding through the Troubled Asset Relief Program (TARP), rather than through Fannie Mae and Freddie Mac, have reportedly cost taxpayers nearly $1 billion alone.

The redefault rate, which TARP’s regulator said is increasing at “an alarming rate,” is highest among the first crop of loans modified under the program. Some 48.3 percent of those loans have reportedly defaulted.

Source: DSNews.com