Home Affordable Modification Program (HAMP)

Kopecki, D. (2010). Obama loan program may extend foreclosure crisis, watchdog says. Retrieved March 23, 2010 from: http://www.businessweek.com/news/2010-03-23/obama-loan-program-may-extend-foreclosure-crisis-watchdog-says.html

This article, published on BusinessWeek’s online site, makes the case that Obama’s loan program, the Home Affordable Modification Program, which was designed with the intent of helping consumers to stay out of foreclosure, is actually helping few borrowers and making the situation worse by spreading the crisis out over a long period of time. Although the US Department of Treasury states that the program will help 3 to 4 million on a long-term bases, internally, they are saying that only half that number will receive permanent alterations of the mortgage loans. This is important information for managers and investors because more than expected foreclosures will have an effect on the economy. Propping up the economy with temporary fixes could make things worse than they would have been otherwise and managers need to be aware of the things that affect the economy and ultimately their business.