RSS Feed
December 28th, 2015 
Awake Goy Now the program is ending.
Tucked away on page 1,983 of the omnibus spending package, signed into law earlier this month, is the following language: “The Making Home Affordable initiative of the Secretary of the Treasury, as authorized under the Emergency Economic Stabilization Act of 2008 … shall terminate on December 31, 2016.”
This language closes out a series of measures initiated after the financial crisis to aid homeowners facing foreclosure, but mostly, it ends HAMP. Few noted its passage, but progressives should be happy to see it go. Perhaps no program of the Obama era did more significant — and possibly irreparable — damage to the promise of an activist government that can help solve the country’s problems.
HAMP’s failure stemmed from its design. Rather than a cash-transfer program that hands vouchers to distressed borrowers so they can lower their mortgage payments, the government gives the money to mortgage servicing companies, to encourage them to modify the loans. But while the government sets benchmarks to follow, the mortgage companies ultimately decide whether or not to offer aid.
To appreciate why this could never succeed, you must understand that mortgage servicers typically have no direct interest in the loan. They are glorified accounts-receivable departments hired by mortgage holders to process monthly payments, handle day-to-day contact with homeowners, and distribute the proceeds. And with small staffs of entry-level workers, they could only turn a profit if they never need to perform any customer service. Handling millions of individual requests for relief simply overwhelmed them.
Read More…
Source Article from http://feedproxy.google.com/~r/blacklistednews/hKxa/~3/vxcQ-oWB36w/M.html
Related posts:
Views: 0
Posted in 
Tags: 
