Consequences of Terminating The HAMP Program
If Congress does indeed terminate the Obama plan (HAMP program), it will have a dramatic negative effect on foreclosure mediations. One of the few tools that attorneys have to ensure some kind of response from the bank is the HAMP program. Under court ordered mediation (something I seek in most cases), defense counsel can move to compel responses to the request for modification. Routinely, we see banks losing documents, failing to live up to mediation agreements, dragging their feet on responding to modification requests, and closing files for documents they allegedly never received. Unfortunately, we must turn to the courts for help in getting the banks to comply with their obligations to conduct loss mitigation. Without the HAMP program, obtaining compliance will be much more difficult as there will be no standardized system for completing a modification.