Proceedings of the New York State Economics Association


How Effective Was the Home Affordable Modification Program in Modifying the Loans of at Risk Homeowners? An Examination of Eight Metropolitan Areas: 2009-2012

Sean P. MacDonald

vol. 6, October 2013, p. 122-138


This paper examines the relative effectiveness of the primary federal mortgage loan modification program - the Home Affordable Modification Program (HAMP) from early 2009 through year-end 2012. It evaluates U.S. Treasury Department and other data sources, and reviews the recent literature on the relative success of the program. The data analysis suggests that HAMP's success rates in a cross-section of metropolitan areas are closely tied to differences in labor market conditions, home price recovery, rates of negative equity, share of borrowers receiving a permanent modification, and the type of modification received. The analysis finds strong evidence that markets most severely impacted by the housing market collapse experienced a comparatively lower rate of permanent modifications.


suggested citation:

Sean P. MacDonald. "How Effective Was the Home Affordable Modification Program in Modifying the Loans of at Risk Homeowners? An Examination of Eight Metropolitan Areas: 2009-2012 ." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 122-138

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