A part of a recent omnibus spending bill, Congress has decided to end the HAMP Loan Modification which offered loan modifications and principal reductions to homeowners struggling to make their mortgage payments or in foreclosure.
Contained in the bill is the following language: “The Making Home Affordable initiative of the Secretary of the Treasury, as authorized under the Emergency Economic Stabilization Act of 2008 … shall terminate on December 31, 2016.”
Chief Deputy Whip Patrick McHenry (R, NC-10), the Vice Chairman of the Financial Services Committee, released the following statement:
“For more than four years, I have been front and center in trying to help homeowners and protect the American taxpayer by ending President Obama’s wasteful and failed mortgage modification program. I am pleased to say that day has finally arrived.
“With passage of today’s consolidated appropriations bill, Congress has finally ended the Home Affordable Mortgage Program (HAMP), which harmed the very people it was intended to help: those who were struggling to keep their homes after the financial crisis. While I would prefer the money saved by eliminating the program be put towards reducing our deficit, I am grateful that we have finally acknowledged HAMP for what it is: a failed government program that hurt those in need.”
Despite claims be critics and Republicans that HAMP hurt homeowners more than it helped, we have had many successful loan modifications for our clients, some with large reductions in principal and interest rates.