I was impressed with Diane E. Thompson's July 16, 2009 HAMP report that she presented to the Banking, Housing and Urban Development committee hearing. Today, November 16, 2010, exactly 16 months later, Ms. Thompson will once again speak in front of the Banking, Housing and Urban Development committee hearing.
I've tried to piece together a few of the more important aspects of the HAMP crisis, and it is a crisis.
Here are five important points about HAMP to be aware of prior to Diane E. Thompson's return 16 months later to Washington.
1. Read Diane E. Thompson's July 16, 2009 report to learn that all of HAMP's problems were identified back then.2. Barack Obama has taken credit for the HAMP program when it first was announced on February 18, 2009 and then again as recently as Oct. 27, 2010 when Phyllis Caldwell, Chief of Home Ownership Preservation Office, proclaimed HAMP hugely successful.3. The latest spin from HUD is that HAMP just puts off the inevitable foreclosure. OUCH!4. Banks are NOT OBLIGATED to follow HAMP guidelines, therefore any HAMP violation by the banks might be easier to void in a court of law. Although homeowners could argue that once a bank agreed to accept a specific HAMP application, the banks should have honored ALL HAMP guidelines for that particular HAMP application.5. Banks accepted HAMP applications AFTER initiating Parallel Foreclosure, a definite no no. OUCH AGAIN!
I will be interested to see what Diane E. Thompson has to say 16 months later.