Richard L. Hanna: “This amendment would add a findings section detailing the flaws of the Home Affordable Modification Program, or HAMP. It…”

“This amendment would add a findings section detailing the flaws of the Home Affordable Modification Program, or HAMP. It would also state that terminating HAMP would result in significant savings for the American taxpayers. I filed this amendment during Sunshine Week, which highlights the importance of open government. In keeping with the spirit of transparency, this amendment would include within the bill the specific reasons why we should end the failed HAMP program. The HAMP program was designed to assist between 3 and 4 million homeowners. However, as of February, only 607,000 active permanent mortgage modifications were made under HAMP. While $30 billion was obligated by the Treasury to HAMP, only $1.04 billion has been disbursed. Furthermore, the Special Inspector General for TARP reported that HAMP offers many homeowners ``little more than false hope and in certain cases causes more harm than good.'' The program does not fulfill its intended purpose of helping American homeowners. It delays rather than prevents foreclosure. This program was flawed from the beginning. According to The Wall Street Journal, the number of applications canceled far exceeds those that were approved, and the number of applications continues to slow. I agree with the Journal's assessment, which also pointed out that keeping people in homes they cannot afford is bad policy. Incentivizing mortgage servicers to do just that only exacerbates our housing crisis.…”