HAMP was criticized in the beginning. Now after two years it's proven not to work. In fact, some of these mortgages will probably fail in the next 3-5 years, so the success rate will probably be under 10%. So why keep the program running?
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The government estimates nearly 2.9 million loans and almost 1.4 million borrowers are eligible for HAMP, yet more trial modifications and permanent modifications have been canceled than converted. Some 740,000 trials were canceled and more than 68,000 permanent modifications were nixed through the end of January. Meanwhile there are another 145,000 active trials and about 539,500 active permanent modifications. When HAMP launched in March 2009, the administration estimated it could help 3 million to 4 million borrowers.