President Obama’s HAMP program was designed to help 3 to 4 million homeowners facing foreclosure and was backed by $30 billion in federal funds. So far, HAMP has spent only $1.2 billion and helped only 670,000 homeowners, a far cry from it’s intended reach.
Bill Whitaker of CBS News took to the streets of Los Angeles and discovered that the program is not working.
Donnie Hines, who lived in her home for 16 years without missing a mortgage payment before losing her job, originally received a loan modification under Obama’s HAMP program. After 2 years of her bank requiring more unnecessary paperwork, losing paperwork, and failing to process her modification, Hines was ultimately told she no longer qualified for a modification due to long term unemployment.
Hines, like many homeowners in distress, sought help at an event hosted by nonprofit Neighborhood Assistance Corporation of America (NACA). NACA has organized events all over the country in an attempt to unite borrowers and lenders to work out loan modifications. These events have seen such a large turn out that desperate homeowners often line up throughout the night to attend.