A key mortgage modification program facilitated by federal
incentives has not only failed to reach the potential envisioned by its
founders, but it also has several key flaws that may have destined it
for failure from the start, expert witnesses testified to the House
Financial Services Committee Tuesday. Home Affordable Modification Program (HAMP), which allocates capped
incentives to servicers, lender/investors and borrowers that
participate in modification of mortgages at risk of foreclosure, was a
large focus of testimony.
Real estate finance expert witness Anthony Sanders, professor at George Mason University, testified that "In order to facilitate lasting loan modifications, banks must be allowed to gradually write-off losses and the private sector must be allowed to help modifications."
For more, see housingwire.com.
