Sunday, March 13, 2011

A good word for HAMP

Every so often the Chicago-based Woodstock Institute think tank throws out a good interpretive item on its blog. Friday's, by Katie, Buitrago, offers a qualified defense of the Home Affordable Modification Program (HAMP), saying it needs to be improved, not destroyed. Including this:
"HAMP modifications have been shown to be half as likely to re-default as are servicer-run proprietary modifications; this is likely because proprietary modifications lack the affordability requirements of HAMP—some may even raise monthly payments."
The link in the quote there is Buitrago's own, and goes to a Woodstock study last fall. The study found the Chicago area had decreasing numbers of HAMP modifications but they were working better than "proprietary modifications," i.e. lenders' own versions of leniency.

Seems worth knowing, since HAMP is one of the four key relief programs Republicans are trying to kill. The bill with HAMP's name on it is HR 839, only just out of committee as of Friday.

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