The government’s Home Affordable Modification program, launched in 2009 in response to the housing crisis, is set to expire at the end of this year. In seven years, HAMP has completed 2 point 3 million homeowner assistance actions for 1 point 8 million families. According to FHFA’s foreclosure prevention report for Q4 2015 released on Thursday, from April 2009 until the end of Q4 2015, approximately 1 point 08 million homeowners with GSE-backed loans were granted HAMP trial mods.
Out of those 1 point 08 million, 650 thousand received permanent modifications. And out of those 650 thousand permanent modifications, approximately 60 percent of them were active as of the end of the fourth quarter. By comparison, a total of 1 point 153 million homeowners received modifications on GSE-backed loans through the GSEs’ proprietary modification programs from April 2009 until the end of Q4 2015.
Last week, Fannie Mae and Freddie Mac announced they would be contributing 186 million dollars to the National Housing Trust Fund in order to provide for funding for construction of affordable rental housing for low-income families. The contribution drew heavy criticism from Republican lawmakers because of perceived risk to taxpayers while the GSEs remain in conservatorship. This week, housing advocates and civil rights groups praised the move but at the same time were also wary of the risk, saying the current arrangement ultimately leaves taxpayers on the hook for another bailout.