Home Affordable Modification Program

“The Home Affordable Modification Program (HAMP) announced by President Obama’s administration on March 4, 2009, is a laudable attempt to overcome long standing reluctance by servicers to perform large numbers of sustainable loan modifications. HAMP seeks to change the dynamic that leads servicers to refuse even loan modifications that would be in the investors’ best interests by providing both servicers and investors with payments to support successful loan modifications. Several months into the Home Affordable Modification Program (HAMP), however, homeowners and their advocates report that the program is not providing a sufficient number of loan modifications to homeowners, the modifications offered often do not meet the guidelines of the program, and the program itself still presents serious barriers to mass loan modifications.”

Diane E. Thompson
National Consumer Law Center
also on behalf of
National Association of Consumer Advocates
Before the United States Senate Committee on
Banking, Housing, & Urban Affairs
July 16, 2009