Tags: Obama | Housing | Aid | Programs | Target | Goals | miss

Obama Housing Aid Programs Fall Below Targeted Goals

Friday, 01 Jul 2011 03:25 PM

More struggling U.S. homeowners sought help with loan modifications in May, the Treasury Department said Friday, although the main program introduced by the Obama administration to aid borrowers at risk of foreclosure remains below its initial expectations.

The Home Affordable Modification Program was created in the spring of 2009 as the centerpiece program to boost the weak housing sector. It aims to reach out to borrowers by making loan work-outs, extending the life of their loans.

The number of borrowers who have received permanent loan modifications since HAMP's inception rose to 731,451 in May, compared with the administration's goal of reaching 3 million to 4 million homeowners when the program was introduced.

"We have much more work to do to reach the many households who still face trouble and to help the market recover," said Department of Housing and Urban Development Assistant Secretary Raphael Bostic.

HAMP, which mainly provides financial incentives to servicers who help borrowers rework their mortgages, has been widely derided as ineffective. Republicans in the House of Representatives voted in March to wind down the anti-foreclosure program, although the Democrat-led Senate is not expected to agree.

A total 32,398 homeowners obtained permanent modifications in May under the HAMP program. That was up 12 percent from 28,867 in April.

The Treasury said there were 633,459 active trial modifications underway in May, up from 608,615 reported the previous month.

"The administration remains committed to reaching homeowners who are still struggling so that our country can fully recover from an unprecedented housing crisis," said Treasury Assistant Secretary for Financial Stability Tim Massad.

Bank of America, JPMorgan Chase and Wells Fargo were the top three servicers participating in HAMP, with 160,211, 106,826 and 101,834 active trial modifications, respectively, as of April. Earlier this month, the Treasury said the three banks needed to improve their loan modification efforts substantially to merit the financial incentives of the administration's rescue program provided to mortgage servicers.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Economy
More struggling U.S. homeowners sought help with loan modifications in May, the Treasury Department said Friday, although the main program introduced by the Obama administration to aid borrowers at risk of foreclosure remains below its initial expectations. The Home...
Obama,Housing,Aid,Programs,Target,Goals,miss,fall
321
2011-25-01
Friday, 01 Jul 2011 03:25 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved