The Obama Administration’s bailouts of the banking and auto industries are well documented and by some measures successful, but that cannot be said of the president’s handling of the foreclosure crisis.
Since 2009, the administration was slow to respond to the outcries of desperate homeowners, many of whom tried to get mortgages reduced through government-sponsored modification programs, according to an article by the New York Times.
Much of the administration efforts were focused on homeowners who were current on their mortgages or those who met strict qualifications, but borrowers with excessive debts or even those who ended up unemployed were not targeted until much later.
Even Obama’s signature program, the Home Affordable Modification Program (HAMP), has been plagued by delays and documentation mishandling by mortgage servicers.
Up to 4 million homeowners were targeted for aid at the program’s launch three years ago. But HAMP has initiated about 1 million mortgage modifications since 2009, with less than 850,000 remaining in programs that reduced their monthly mortgage payments.
In the most egregious cases, mortgage services went ahead and foreclosed on homeowners who were in the middle of modification trials.
The New York Times details how the Obama Administration was slow to ease the foreclosure crisis, a vital component of an economic recovery and a missed opportunity that may haunt the president’s effort for re-election.