Mortgage Modification? Yeah, Right.
For months, I've been hearing all measures of horror stories regarding Obama's so-called "Home Affordable Modification Program" (HAMP). The purpose of the program was to provide $75 billion to subsidize lenders who discharged mortgage loan modifiications for troubled debt -- through interest rate reductions, loan repayment extentions, and/or principle deferrals for up to five years. The program was alswo supposed to restructure other related mortgage loan conditions in order to stop foreclosures.
Big surprise: apparently the program isn't working out.
News stories abound regarding the failure of lenders to modify mortgage loans in meaningful numbers --discrediting the Obama administration, and causing a lot of people (like me, for instance) to question just what the hell all the government is so much currency if loans aren't going to be made?
Just so you'll have a frame of reference, HAMP's original purpose was to help 4 million Americans with home loan mortgage refinance. So far, the program has contributed to only about 66,000 people successfully refinancing their mortgages.
As I've mentioned so many times before, the United States government has committed itself to almost $13 trillion in programs like HAMP since 2008. And that money is earmarked for this economic crisis, alone. $13 trillion is nearly impossible to understand, and now it's not even doing what it's supposed to!
Continue reading at Paco's new blog site, THE BOTTOM VIOLATION: http://www.BottomViolation.com...
Disclosures: Paco is long TBT, UCO, and gold. He also holds U.S. dollars by necessity, pending the advent of private gold-backed currencies.
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