Was HAMP Designed To Help Homeowners?

What is HAMP? It is President Obama’s Home Affordable Modification Program. It was a major mortgage modification scheme that was successful about one-tenth as many homeowners as predicted.

Banks have not been eager, in general, to modify mortgages and to take government money to write down mortgage principal.

Why? In most cases because banks no longer own the mortgages in question. Investors do.

HAMP provided hope to hundreds of thousands of struggling homeowners. In effect if not in purpose, HAMP simply spread out mortgage default over several years rather than having them happen within a year and swamping the market and driving down home prices.

Here’s a report from Michigan:

Steve Dibert, a mortgage fraud investigator who owns the company MFI-Miami, said there was little surprise in the new revelations.

“Like everything else that has come out of Washington since the crash, this double talk is nothing new from Fannie Mae,” Dibert said. “They’ve been doing it for years. Mortgage servicers and banks have also been doing this for years. Contrary to what was pitched to Congress and the American people, HAMP was not designed to help homeowners. It was done to essentially take the 5 million plus mortgages that were slated to default in April of 2009 and spread them over a two to three year period. The banks feared that had this number of mortgages gone into default all at once it would have collapsed the US banking system.”

The documents also may impact all foreclosures. Dibert notes that those documents appear to indicate an ownership of the mortgages.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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