This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Don't Extend HAMP - End It

Stocks in this article: BAC WFC JPM

Even the OCC wrote in its most recent report, "The decline in new foreclosures and foreclosures in process reflects a strengthening economy, a declining number of serious delinquencies, and an emphasis on alternatives to foreclosures." So, why spend probably another half a billion dollars to extend a program that has not lived up to its expectations? One that has only proven the longer a homeowner is involved in HAMP, the more likely they are to redefault. Even those that receive a permanent modification are getting cancelled at a rate of 14%.

One reason was to align HAMP's deadline with other extended deadlines for other programs like the Home Affordable Refinance Program (HARP), a refinancing program administered by the Federal Housing Administration (FHA). This makes perfect sense. Spend an additional half a billion dollars so a deadline will align with a separate program from a different department. The HARP program isn't even reflected in the SIG TARP report on TARP expenditures anymore. At one time HARP was reviewed along with the Making Homes Affordable program, but not anymore. The Special Inspector General is also worried that an extension of the program could lead to more fraud.

Ultimately, the extension is about saving face. The Treasury is going to spend $18 million in an outreach program to try to convince more homeowners to ask for assistance. The money goes to non-profit groups that will receive $5,000 to kick off the program and $450 for each application, whether it results in a modification or not. This program began on May 1, and the HAMP extension went through on May 30. Excellent timing.

If a homeowner hasn't requested help over the last five years, does it really make sense to spend $18 million to go out and find them? Beg them to apply for help? Pay groups to find them? Only if it will result in the ability of the Treasury to be able to say it helped more people. When the Treasury is pressed for an answer, a spokeswoman could only repeatedly say they wanted to help more people. Really the Treasury only wants to tout the number of people it has reached out to to help, not the number of people that can get approved and can actually stick with the program.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs