Pat Garofalo – Coburn: Medicaid Recipients Should Pay More For Health Care To Help Lower The Deficit
From the Wonk Room:
By Pat Garofalo
When last we visited the Home Affordable Modification Program (HAMP) — which is the Obama administration’s signature foreclosure prevention program — it was badly sputtering, spending little of the money allocated to it. More borrowers were being booted from the program mid-stream than were receiving permanent mortgage modifications.
The Congressional Oversight Panel released a report today that doesn’t make the picture any prettier. To date, HAMP has processed about 500,000 permanent loan modifications, out of 1.4 million trial modifications that have been initiated. And the redefault rate (meaning the number of borrowers who again fall behind on their mortgages, post-modification) is an ugly 21 percent:
Figure 19 shows that although only around 1 percent of permanent modifications are 90+ days delinquent within their first three months, the number jumps to 5.5 percent by month six and 11 percent by month nine; within a year, 21 percent of HAMP permanent modifications are 90 or more days delinquent, at which point they are disqualified from the program.