NEW YORK ( TheStreet -- The Obama administration is extending the Making Home Affordable Program even though the program has not achieved its goals and they say the housing market has begun a recovery. Known as HAMP, the Treasury launched the program in 2009, saying it would provide relief to 3-4 million at-risk homeowners, helping them avoid foreclosure. The Treasury brags that 1.1 million homeowners have received permanent modifications, but currently only 862,279 homeowners are in active HAMP modifications and as of March 31, 2013, 312,000 have redefaulted on their modifications.The Treasury originally committed $50 billion for the program and has since reduced that amount to $38.5 billion and has actually only spent $7.3 billion. However, it has cost the Treasury half a billion dollars ($588 million) to administer the program. So, it spent $682 to give these homeowners roughly $8,400 each. The program was scheduled to end in December of this year, but has been pushed out two more years to 2015, even as Treasury Secretary Jacob Lew acknowledges that the housing market is gaining steam.
Don't Extend HAMP - End It
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.