March 10, 2011: The House Financial Services Committee voted Wednesday in favor of two bills that would terminate both the Home Affordable Modification Program and the Neighborhood Stabilization Program.
Since the government’s loan modification program known as HAMP launched in March 2009, servicers offered 600,000 permanent modifications and placed 1.4 million borrowers at risk of foreclosure into a three-month trial. But critics on both sides of the aisle criticized HAMP for being too lax on servicers who have underperformed, and not meeting the original goal of reaching between 3 million and 4 million borrowers. The program was originally set to expire at the end of 2012.
The committee voted 31-24 to end NSP and 32-23 to end HAMP. We won’t miss you.