Mortgages

Federal Mortgage Programs Won’t Meet Stated Goals

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Federal Mortgage Programs Won't Meet Stated GoalsSpeaking before Congress earlier this week, U.S. Treasury Secretary Timothy Geithner told lawmakers that the federal government’s Home Affordable Modification Program will likely fall well short of its goals to aid millions in making their mortgages more affordable, according to a report from Reuters. The program will likely not be able to help the 3 or 4 million troubled homeowners through the end of 2012 as initially planned.

“[W]e won’t come close to initial estimates,” Geithner told the U.S. Senate Budget Committee, according to the report.

[Related: Solving the Foreclosure Mess]

He noted that in particular, the incentives the government offered to mortgage lenders in an effort to convince them to change the terms of their most troubled home loans were not strong enough to drive significant renegotiations, the report said.

[Related: Why the Home Loan Mod Program is Failing]

Many have also criticized HAMP and other government mortgage assistance programs as being far too difficult for even extremely troubled homeowners to qualify for. This left many individuals who the programs were originally intended to help out in the cold, despite billions of taxpayer dollars being committed to the projects.

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  • Lanie

    I was on the making home affordable waiting list from 8/2009 to Jan 2011, come to find out I don’t quailfy so the bank worked on an inhouse program. During this time the bank put me on trail payments which I was never late on (prior to applying I was never late in 3 years on new mortage- was laid off and bank told me to be late by 1 month so I could apply and get the ball rolling) Since waiting on the program the bank has reported monthly to bureaus that I am late and credit score is so bad. Anything I can do to correct this? I couldn’t finance a piece of bubble gum if I needed too.

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