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

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Refer friends to Select and get $200 in credit.Register Here×
Connect Now is less than one week away. Prices go up May 30.Reserve your seat today.×