HUD Chief Calls HOPE Program a Failure

Digested From "HUD Chief Calls Aid on Mortgages a Failure"
Washington Post (12/17/08) by Dina ElBoghdady

HUD Secretary Steve Preston said the three-year HOPE program--the centerpiece of the U.S. government's efforts to assist struggling homeowners--has been a failure and it is Congress' fault. The program aimed to help 400,000 borrowers avoid foreclosure, allowing borrowers who owe more than their residences are worth to refinance into more affordable 30-year fixed-rate mortgages insured by the government. Since its October launch, however, it has attracted only 312 applications because it has been deemed too expensive and onerous for both lenders and borrowers. Rep. Barney Frank (D-Mass.), who played a key role in steering the HUD program through Congress, believes that some of the federal bailout money should be used to revamp it.