Obama signature programs that include at least four plans aimed at bringing relief to underwater borrowers are under attack by Republicans. A press release from the party termed these as "failed and ineffective" housing programs.
These programs include the Home Affordable Modification Program (HAMP), the Neighborhood Stabilization Program, the Federal Housing Administration Refinance Programs and the Emergency Homeowner Relief Fund. Republicans expect to save at least $38 billion by putting an end to these programs.
The programs are doing more harm than good for struggling borrowers and there is no point spending a lot of money when the treasury is facing record-breaking deficits, according to a statement made by a Republican recently.
There is no denying that the program has helped prevent hundreds of thousands of foreclosures, but when the problem has acquired such a huge dimension that millions of homeowners are affected, these efforts are just a drop in the ocean. The Treasury is being criticized and the program is being termed as "failure" by several specialists.
According to a source, more than 500,000 permanent modifications have been done under HAMP so far. Out of these 238,000 has been funded by TARP. These figures seem to support the point made by Republicans and many experts of the real estate industry.