Did the efforts of the Home Affordable Modification Program help homeowners regain financial stability and rally private markets to prevent foreclosures?
According to those who testified before the Congressional Oversight Panel, the answer is yes.
The government’s much-criticized Home Affordable Modification Program helped set the stage for a successful private loan modification effort that likely wouldn’t have gotten off the ground without it, said Faith Schwartz, former executive director of Hope Now.
Schwartz testified Wednesday before the Congressional Oversight Panel on the Troubled Asset Relief Program, in a hearing about TARP foreclosure mitigation programs.
“The HAMP roadmap set the stage for servicers to better apply solutions for distressed borrowers who failed to meet the HAMP requirements,” Schwartz said in written testimony submitted to the panel.
“The Home Affordable Modification Program (HAMP) has received criticism, in part, because it did not immediately produce certain projected numbers of permanent loan modifications,” she wrote.
Full testimony by Faith Schwartz to the Congressional Oversight Panel is available ere.
Full story is available online: “Schwartz to Congressional Oversight Panel: HAMP gets a bad rap”