Statement By Robert Hurt On The HAMP Termination Act

Statement

Congressman Robert Hurt (R-VA) today released the following statement after voting in favor of H.R. 839, to end the Home Affordable Modification Program (HAMP) and save taxpayers nearly $30 billion:

"With our nation facing a dire debt crisis and unemployment still unacceptably high in the 5th District, the last thing Central and Southside Virginians need is to have more of their taxpayer dollars go towards another ineffective government program at a time when they can least afford it.

"Not only has HAMP failed to help a sufficient number of distressed homeowners to justify the program's $30 billion cost, but more importantly, HAMP is doing serious harm to those it seeks to help by giving struggling, at-risk homeowners a sense of false hope and encouraging participation in a program that has a staggeringly high rejection rate.

"The best way that we can help homeowners in the 5th District stave off foreclosures is with a job. Instead of trying to spend our way to an economic recovery, it is critical that we continue to focus on supporting polices that remove barriers to job growth so that our job creators will have the confidence necessary to put people back to work and move our economy forward."

Background Information

The House has previously voted to end three other ineffective government housing programs saving taxpayers billions: The FHA Refinance Program Termination Act, The Emergency Mortgage Relief Program Termination Act,and the Neighborhood Stabilization Program Termination Act.

H.R. 839 terminates Treasury's authority to provide new assistance under the Home Affordable Modification Program (HAMP) while preserving the contracts made prior to the bill's enactment. H.R. 839 prevents $30 billion in TARP funds from being spent. HAMP was announced by the Administration in February 2009 as part of a three-part "Making Home Affordable Program." The Administration claimed HAMP would help up to 4 million homeowners. Instead, only 521,630 loans have been permanently modified under this program and the re-default rate is high. From the $30 billion earmarked for HAMP, only $840 million has gone out the door. There is widespread criticism that HAMP is not working and is only making matters worse for many of the homeowners who participate or seek to participate. The Special Inspector General for TARP (SIGTARP), the Congressional Oversight Panel, and the Government Accountability Office have all detailed the shortcomings of HAMP and highlighted how this program has hurt, rather than helped, struggling homeowners. Rewarding servicers with taxpayer dollars to modify mortgages has proven costly, as Treasury estimates a $20,000 cost to taxpayers for each successful HAMP modification.

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