Critics of the Home Affordable Modification Program have often pointed to the large number of foreclosures seen across the U.S. as evidence that the initiative is a failure, according to a report from Reuters. However, Acting Assistant Secretary of the Treasury Timothy Massad said this is not necessarily the case.
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“We acknowledge that our housing programs have not been without criticism, and that housing is an area where there is still much work to be done,” Massad recently said at a Congressional hearing. “It is important to remember that the program was not intended to prevent all foreclosures.”
Currently, there are about 5 million homes across the country that are facing foreclosure as a result of delinquent payments, and this number is too large for any reasonably-sized government program to significantly reduce at one time, the report said. Massad also said Republican efforts to downsize or even eliminate HAMP would be unfortunate and misguided.
HAMP has cost American taxpayers billions of dollars while only assisting a small fraction of the financial troubled people intended. It was originally designed to help between 3 million and 4 million consumers who lost their job stay in their homes.