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Frustrating HAMP program

.00008%. That's how many loan modifications have been done out of the total number of consumers that have applied for HAMP (Home Affordable Modification Program).

Hamp, around since 2009, was supposed to help struggling homeowners avoid foreclosure. A benefit for the homeowner as well as the bank. The program, however, has been fraught with a lack of oversight and enforcement by the Treasury. Banks (servicers, technically) signed on to the program but haven't actually done much to help out. Despite the incentives from the Treasury, the banks have either avoided telling consumers about the program or misused the formula the Treasury gave them to determine who would qualify.

Thanks to strong lobbying by the banking industry, the program will most likely fade into oblivion. Another good idea, poorly executed.

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