Quoted from a CNN article saying how government has helped with loan modifications and the mortgage problem…
“Under HAMP, eligible borrowers can have their monthly payments lowered to 31% of their pre-tax income as long as its more profitable for the bank to modify the loan than to foreclose. The federal government pays servicers an incentive to participate in the program.”
Translated: “Under HAMP, people can have their payments lowered if it is more profitable for the banks. The federal government pays the banks to do this.”
THE GOVERNMENT IS GIVING OUR MONEY TO THE BANKS TO DO WHAT IS FINANCIALLY BETTER FOR THE BANKS TO DO ANYWAYS. THAT IS OBAMA’S HAMP LOAN MODIFICATION PROGRAM.