Affording the unaffordable – HAMP fails again

Calling HAMP the flagship program is a bit of a joke since it’s been a failure since day 1.

From the Washington Post:

With clock ticking on mortgage relief, homeowners wonder what’s ahead

Five years after the federal government bailed out more than 1 million struggling homeowners, many who got the relief may end up losing their homes after all.

Already, nearly 30 percent of those who qualified for relief have defaulted again. And roughly 800,000 borrowers who remain enrolled in the government’s flagship program will see their mortgage interest rates gradually rise starting this year — eventually increasing payments by more than $1,000 a month in some cases, according to a recent federal analysis.

As the higher payments kick in, regulators and consumer advocates fear that homeowners won’t be able to stay current on their mortgages, placing an unwelcome strain on the housing market and potentially on economic growth.

“The program was a temporary Band-Aid,” said Greg McBride, a senior financial analyst at Bankrate.com. “Five years later, that Band-Aid is going to be ripped off.”

The initiative was based on the flawed assumption that the economy would bounce back more quickly, undoing the damage wrought by plunging home prices and high unemployment. The program lowered the monthly mortgage payments of qualified borrowers for five years, presumably long enough for them to regain their financial footing.

But since the initiative’s launch in 2009, the average household income has been flat for all but the highest earners. And while home prices have climbed in the past two years, many borrowers continue to owe more on their mortgages than their homes are worth, making it difficult to sell their properties or refinance their way out of trouble.

Obama administration officials defend the Home Affordable Modification Program (HAMP). But they say they are prepared to respond if there is a significant uptick in delinquencies among the homeowners.

The outcome could determine how far the administration is willing to go on behalf of homeowners, experts tracking the issue said. Funding for the initiative came from the $700 billion that the Treasury Department used to bail out banks and other firms considered vital to the nation’s financial stability.

“The question becomes: Will Treasury help them get back on their feet in the same way it helped the banks get back on their feet?” said Christy Romero, the special inspector general for the Troubled Asset Relief Program, which oversees the handling of the bailout money.

This entry was posted in Economics, Foreclosures, Housing Recovery, Risky Lending. Bookmark the permalink.

56 Responses to Affording the unaffordable – HAMP fails again

  1. anon (the good one) says:

    Grim, you used to open the comments very early, 5 am or so. Lately, it is around 7, why is that?

  2. Ha. The guy in this article calls HAMP “a temporary band-aid…about to be ripped off”.

    Compare this to ZIRP, a temporary band-aid that will be in place until Amerikan civilization collapses.

    Amerikan values = better to be a bankster welfare queen

  3. Essex says:

    1. He has a life? Schmuck.

  4. Phoenix says:

    ZIRP? I wish I could borrow money from the government at the rate the banks can. 0% mortgage would make me happy.

  5. phoenix (5)-

    The devastation to come will make Bitcoin look like sound money.

  6. I say we get shot straight back to hunter/gatherer society, with barter and trade being the currency of the day.

  7. nwnj says:

    #5

    The occupy WS dopes kind of had a point with that, considering most of the student loans rates and the inability to discharge them in bankruptcy. I have a feeling that isn’t the last we’ve heard of that topic.

  8. xolepa says:

    Clot’s on a roll today.

  9. Painhrtz - Disobey! says:

    he works like the rest of us you leach

  10. Comrade Nom Deplume, Guardian of the Realm says:
  11. Phoenix says:

    8. NWNJ

    “He alone, who owns the youth, gains the future.”
    Hitler coined the quote, put that aside. That is irrelevant.
    Realize that corporations/marketing is targeted towards kids at an early age.
    Social media, tracking kids, direct advertising thru “likes.”
    Visa, Mastercard , AE on campuses, enticing the youth with debt products.
    College loans nondischargeable in bankruptcy, yet Trump’s companies did it 4 times.
    Granny can drive at 100 without retesting, plows her car thru a 7-11, but a kid needs a sticker on a license plate to drive.
    Read about Inbloom, Cuomo is trying to end it at the schools.
    Adults trying to mold kindergartners like robots.
    Just like a page from the Hitler playbook. Along with “kids in uniforms.”
    https://www.youtube.com/watch?v=_cT-bqwxrMQ

  12. nwnj says:

    #13

    Today is the age of mindless consumerism. Kids aren’t treated by society as a vital resource given the maximum chance of succeeding, they’re looked at as future taxpayers, customers.

  13. Libtard in Union says:

    I like the mother screaming.

  14. anon (the good one) says:

    @pourmecoffee: True story: Sarah Palin just up and quit her job right in the middle of it. Being totally serious, Google it if you don’t believe me.

  15. joyce says:

    ” But Brennan has pushed back on the speculation. He said last week he was “deeply dismayed” that some Senate members made allegations that “are wholly unsupported by the facts.” ”

    http://www.foxnews.com/politics/2014/03/11/feinstein-claims-cia-may-have-violated-law-constitution-in-allegedly-spying-on/

    And just what branch is the CIA apart of? The right answer is of course the Executive, but we all know they answer to no one (in reality, not in the show-circus that is the Fedgov)

  16. joyce says:

    [oops, I copied the wrong paragraph]

    “I am very confident that the appropriate authorities reviewing this matter will determine where wrongdoing, if any, occurred in either the executive branch or legislative branch,” Brennan said in a statement. “Until then, I would encourage others to refrain from outbursts that do a disservice to the important relationship that needs to be maintained between intelligence officials and Congressional overseers.”

  17. JJ says:

    I hate when a girl just gets up and quits her job right in the middle of it as I end up with blue balls.

    18.anon (the good one) says:
    March 11, 2014 at 12:21 pm
    @pourmecoffee: True story: Sarah Palin just up and quit her job right in the middle of it. Being totally serious, Google it if you don’t believe me.

  18. chicagofinance says:

    JJ what did you think about that Duke freshman making all those p0rn videos to pay her tuition? and then the guy who runs a p0rn site outing the Duke d-bag who outed her? He spent something like $1,000 on subscriptions…..I need that kid’s parents to front me that kind of coin…..

    JJ says:
    March 11, 2014 at 1:13 pm
    I hate when a girl just gets up and quits her job right in the middle of it as I end up with blue balls.

  19. chicagofinance says:

    $1,000 A MONTH

  20. chicagofinance says:

    BTW JJ: I can’t find any bonds out there at all…..it is worse than trying to buy a house in upper haughtyville….

  21. Painhrtz - Disobey! says:

    chi a grand a month while in college. Not to sound like JJ but some pron related plot happened to me at least once a semester in college and I’m no male model. while keeping a steady girlfriend.

    And we never paid for pron.

    This kid is doing it wrong, my how Duke’s standards dropped

  22. Street Justice says:

    NJ Hearing Today Could Ban Tesla Stores In State; Electric-Car Maker Cries Foul

    http://www.greencarreports.com/news/1090801_nj-hearing-today-could-ban-tesla-stores-in-state-electric-car-maker-cries-foul

    Brilliant job guys! No free market capitalism for you NJ!

  23. JJ says:

    Fannie, Freddie shares plunge more than 30%
    MARKETWATCH — 5 MINUTES AGO
    WASHINGTON (MarketWatch) — Common shares of federally controlled mortgage buyers Fannie Mae (Symbol : FNMA ) and Freddie Mac (Symbol : FMCC
    ) were recently off more than 30% each, hours after U.S. lawmakers released a blueprint on Tuesday for a housing- finance reform proposal. At 10 am Eastern, bipartisan leaders of the Senate Banking Committee said they would soon release a draft bill that would wind down Fannie and Freddie, and reform the U.S. housing-finance system. Fannie and Freddie common shares didn’t start dropping until several hours after that news broke. The most heavily traded preferred shares of Fannie (FNMAS) and Freddie (FMCKJ) were recently down by about 11% and 9%, respectively.

  24. JJ says:

    You were one blasting 11% PR muni bonds around two months ago. They are all like moved from 55-75 since December. Pretty impressive. Trouble is it was like banging a Tijuana Ho without a rubber, you never know what you will end up with.

    I went on a crazy muni bond buying spree from July 2013 till January 2014 so I have a lot of stuff.

    What kills me is high yield no longer makes sense in my taxable account at par or higher. The days of cheap Ford, Citi, AIG, Genworth, BAC bonds are long over.

    If one wants to hold to maturity you can still get VI bonds at 5% straight up and some are insured. Guam I dont like at all. PR is gambling. NY mainly hospitals, Nassau County and Colleges pay a better rate but I am at my max.

    LIPA is way too low now. Back in August through January I bought 100K of long term LIPA bonds at or below Par with a 5% coupon. Now you are lucky to get same thing with a 4% coupon.

    Dont laugh, but New York Community Bank has a great dividend and also some of BPOP trups. But trouble is that can only be 1-3% of portfolio.

    24.chicagofinance says:
    March 11, 2014 at 2:00 pm
    BTW JJ: I can’t find any bonds out there at all…..it is worse than trying to buy a house in upper haughtyville….

  25. Street Justice says:

    New Jersey bans direct auto sales; Tesla stock inches lower

    http://www.cnbc.com/id/101481668

  26. Painhrtz - Disobey! says:

    Elon Musk a Preston Tucker for the 21st century.

    Gotta protect the brick and mortar BS, plus the phoney baloney jobs of those fine dealer folks.

    Hey Anon tell me again how government works in the interests of the people. not that I would buy a battery operated care with limited range

  27. Street Justice says:

    30 – He will just blame it on Chris Christie and the republi-tea-toads or whatever.

  28. Juice Box says:

    Another hypocrite a-hole of highest order….

    “Fellow Republican Sen. Lindsey Graham of South Carolina called the allegations, if true, “dangerous to a democracy.”

    “Heads should roll, people should go to jail, if it’s true. … I’m going to get briefed on it. If it is the legislative branch should declare war on the CIA, if it’s true,” Graham said.”

  29. Painhrtz - Disobey! says:

    some animals more equal than others

  30. Juice Box says:

    If that missing airliner really did turn back and crash in the Strait of Malacca they should find it soon. Water depths there are rarely above 100 ft.

  31. Comrade Nom Deplume, Guardian of the Realm says:

    When you read this quote from the head of the North Carolina auto dealers assn on why Tesla should be kept out, be sure you aren’t holding anything hot or breakable, and no one is in projectile vomit or coffee spray range:

    “It’s a consumer protection,” said Bob Glaser, president of the NCADA, “and why we say that is a dealer who has invested a significant amount of capital in a community is more committed to taking care of that area’s customers.”

  32. grim says:

    NJ banned direct sales? You’ve got to be kidding me.

  33. Chris Cartman Christie says:

    Tesla is going nowhere, because unlike Google, Tesla is going where very powerful groups have the racket set up; and lords knows, no one that has a nice racket going likes someone coming in to screw him up.

    Tesla should have a little street smarts and do a buy out or buy in as partner into a major national car dealership network like AutoNation and then cut the industry’s gut from outside.

    Rackets are parasitic, the way to beat a racket is to become a parasite to the parasite.

  34. Juice Box says:

    I agree with the Motor Vehicle Commission that car runs 1970s technology which is-rechargeable AAA batteries, 6,831 cells to be exact. We cannot have electric cars messing up tax revenue from gasoline, 10.5 cents per gallon to be exact and the jobs program that is NJ where you cannot pump it yourself, you need someone perhaps of a questionable immigration status to do it for you. When TESLA goes bust there also needs to be at least a dealer network that can close down and have empty store fronts and lots dotting the highways of NJ.

    I am really joking of course. What Musk and Panasonic should have done is threaten to pull business from NJ. Panasonic has allot to lose with TESLA, they did move their headquaters to Newark after all.

    http://www.nj.com/business/index.ssf/2013/09/christie_newark_panasonic.html

  35. nwnj says:

    The current best way to buy a car is online and out of state. You can beat down the margin pretty good and still get exactly what you want. You have to find a way to get the car, though, whether it’s delivery or a long ride to pick it up. Either one cuts into the savings a bit.

  36. chicagofinance says:

    Wasn’t there some story staring K!ki Farnum?

    A beloved pet hamster who was trapped in a drainage pipe was blown to freedom by an industrial air hose in England.

    Elisha Power, 8, was devastated to learn that her pet, Holly the Hamster, had broken free of her exercise ball and was nowhere to be found, reports the Daily Mail.

    The mischievous rodent managed to maneuver her way through a small gap in a kitchen cabinet and became lodged in a drainage pipe beneath the family’s home.

    While the young girl and her parents, James and Claire, eventually located the hamster, they were unable to tempt her out of the pipe.

    But the worried parents didn’t give up, and called upon some construction workers the next day to help them rescue their crestfallen daughter’s Christmas present.

    At first the builders dug a hole around the pipe’s terminus, but were still unable to reach the rodent.

    In a last-ditch effort to save the day, workers succeeded in using an industrial air hose to blast the hamster out of the pipe, 18 hours after she’d become trapped.

    Amazingly, the pet was left unscathed by the entire ordeal.

    “We gave her a bath and a blow dry and she was running around like nothing had happened. Elisha was absolutely made up,” young Elisha’s father told the paper.

  37. anon (the good one) says:

    theres nothing more dangerous to our democracy than the Koch bros

    Juice Box says:
    March 11, 2014 at 3:45 pm
    Another hypocrite a-hole of highest order….

    “Fellow Republican Sen. Lindsey Graham of South Carolina called the allegations, if true, “dangerous to a democracy.”

    “Heads should roll, people should go to jail, if it’s true. … I’m going to get briefed on it. If it is the legislative branch should declare war on the CIA, if it’s true,” Graham said.”

  38. Street Justice says:

    Grim, would you kindly unmod my important post? I can’t imagine why it was modulated.

  39. grim says:

    I don’t see it

  40. Wake me up when you have a video of a Dukie chick in a donkey show.

  41. chi (41)-

    Amazed no one has tossed in a Richard Gere joke yet.

    “In a last-ditch effort to save the day, workers succeeded in using an industrial air hose to blast the hamster out of the pipe, 18 hours after she’d become trapped.”

  42. Juic Box says:

    Grim did you get any freshies out in the North West?

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