Government Housing Program Has Failed

Many Republicans are claiming that The President's 75 billion dollar Housing Program that was designed to provide incentives for mortgage companies to modify the mortgages of homeowners and prevent more foreclosures has failed to accomplish its goal. An ABC news article said:

"By every empirical measure, HAMP has failed," concluded Rep. Darrell Issa, R-Calif., and Rep. Jim Jordan, R-Ohio., citing a record number of homeowners in foreclosure.

The administration's program provides incentives for mortgage companies to modify the loans of qualifying borrowers. When the administration unveiled the program last March, officials said the plan would help 3 to 4 million homeowners avoid foreclosure.

The two GOP lawmakers that released the report say that the Home Affordable Modification Program is actually hurting the economy's recovery. The progam may have helped reduced the numbers of foreclosures that would have happened had there been no program in place, but it fell far from its intended goal of 3-4 million avoiding forclosure.