It was designed to fail. Its provisions included no accountability. Guidelines only were provided. Banks and other mortgage services ignored them. Foreclosures mounted. Millions of homeowners were defrauded. Nothing changed to this day.
One of HAMP's most pernicious abuses was letting servicers "direct borrowers who were current on their mortgages to start skipping payments, telling them that that would allow them to qualify for a HAMP modification," said Barofsky.
"Homeowners who might have been able to ride out the crisis instead ended up in long trial modifications, after which servicers would deny them a permanent modification and send them an enormous 'deficiency' bill."
"Borrowers who might otherwise never have missed a payment found themselves hit with whopping bills that they couldn't pay and now faced foreclosure. It was a disaster."
Geithner bears full responsibility. Understating problems, he admitted solutions "won't come close" to expectations. He refused to address glaring shortfalls. He abandoned Main Street for Wall Street. He's complicit in grand theft. He and banker cronies belong in prison.
Banks know they can steal with impunity. They're larger and more powerful now than when crisis conditions erupted. They can speculate recklessly. They'll be bailed whenever they get in trouble.
Treasury "ignore(d) rather than support(ed) real" reforms. Its "broken promises" turned TARP and other programs into a giant Wall Street "giveaway."
Its "mismanagement" and criminal complicity "damaged the credibility of the government"." Conditions are so out of control that future policy makers may be unable "to save the system the next time a crisis arises."