HAMP is the Home Affordable Modification Program that was enacted in 2009 to enable borrowers to modify their mortgage and, thus, lower their costs. The special inspector general of the Troubled Asset Relief Program which recently issued a report on HAMP does not think so.
First of all, there are only 887,001 borrowers participating in the program. The banks participating in HAMP have rejected 72% of the four million requests for help. Since there are no standards for processing the requests, banks are calling the shots. A problem in this is that there have been a number of errors made by the banks, such as not realizing a borrower is married, or losing the application data, etc.
Of course, the banks dispute the findings of the report. Surprisingly, the Treasury also has problems with the report.
Who is right?
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