Skip to main content

Walberg Votes to Eliminate Another Ineffective Program

January 25, 2013

Today,Congressman Tim Walberg voted to save $30 billion dollars in taxpayer funds by supporting H.R. 839, the HAMP Termination Act. The bill would terminate the Home Affordable Modification Program, commonly known as HAMP. HAMP, partially funded under the Trouble Asset Relief Program (TARP), is another failed program that the federal government haphazardly created to deal with the recent economic downturn. The program was intended to allow the federal government to assist homeowners in achieving a mortgage loan modification to avoid foreclosure. HAMP has been criticized for not fulfilling its mission by Neil Barofsky, Special Inspector General for TARP (SIGTARP), and the Government Accountability Office (GAO). Among other criticisms, GAO has pointed out that more participants have fallen out of the program during the trail phase than have received permanent modifications.

Congressman Walberg released the following statement:

“I had the opportunity in a recent hearing to question officials from the Department of the Treasury as well as Neil Barofsky, Special IG for TARP. As result of the hearing, it was apparent to me that there numerous moral and practical problems with HAMP and other programs funded with Wall Street bailout funds. I voted against TARP once, and I am happy to support the termination of this program, which has failed to use taxpayer funds effectively. HAMP has given false hope to homeowners and has delayed foreclosures, not prevented them. The best way to prevent foreclosures is by getting Americans back to work again. Instead of throwing good money after a bad program, we should stop this spending binge and instead focus on encouraging job creation.”