Three million mortgages are believed to be eligible for HAMP with 500,000 in a trial phase. The trial was supposed to last three months, but it has since been stretched to five months.


The Doctor believes that many of these "repaired" loans will simply re-default. Why?

For one reason, the underwriting (courtesy of TurboTax Tim) for the program uses "stated income", not verified income.

These are the very same "liar's loans" that helped trigger the mortgage meltdown!

Examining the chart, of the 50,130 trial modifications entered into in May, only 1,711 (or only 3%) resulted in a permanent modification!

As The Huffington Post reported a few days ago, the low number of permanent modifications is still appallingly low ("HAMP will come nowhere close to keeping up with foreclosures").

Among the reasons for the low conversion rate: failure to make timely payments (doh!), failure to assemble necessary documentation (like income verification), and other . . .

. . perfectly predictable screw-ups.

If we assume a conversion rate of twice (5%) of the early trial HAMP modifications (we’re being generous, I’m sure), we end up with some stunning figures:

$75 billion to help 25,000 mortgages
That’s $3,000,000 per mortgage!

Isn’t government efficient?

Gee, Grandma, I can’t wait for socialized medicine!

Read more >>>


More Cowbell 2.0!

They are drunk. Seriously. On a payday Friday night. Bastards!