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House Bill Would Kill HAMP

Legislation cutting the national deficit by $35 billion reaches the House floor containing provisions eliminating the Home Affordable Modification Program (HAMP), one of HUD's foreclosure prevention initiatives.

CD Publications is told the legislation could clear the House but stall in the Democrat-controlled Senate, although one part of the package renewing the National Flood Insurance Program may be agreed to.

HAMP was initially funded with $30 billion of the $700 billion issued to address the housing crisis in the Troubled Assets Relief Program. HUD tightened participation requirements in the early years of the effort and has convinced only a fraction of at-risk homeowners to participate. As a result, homeowners looked to the voluntary lending industry effort HOPE Now for the majority of mortgage modifications.

The bill's supporters cite a Congressional Budget Office estimate eliminating HAMP would save $2.8 billion.

Info:See the committee's version of the bill at http://financialservices.house.gov/UploadedFiles/BudgetRecon.pdf

#housing #CommunityDevelopment
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