Skip to main content

Main menu

  • Latest
  • Issues
    • Published Ahead of Print (PAP)
    • Current Issue
    • Latest Articles
    • Archive
  • About
    • Journal Information
    • Editorial Board
    • About IIJ
  • Information for
    • Advertisers and Sponsors
    • Agents
    • Authors
    • Institutions
  • Events
  • Videos
  • Institutional Investor Journals: Home
    • The Journal of Alternative Investments
    • The Journal of Derivatives
    • The Journal of Fixed Income
    • The Journal of Index Investing
    • The Journal of Investing
    • The Journal of Portfolio Management
    • The Journal of Private Equity
    • The Journal of Retirement
    • The Journal of Trading
    • The Journal of Wealth Management
    • Practical Applications
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook

User menu

  • Register
  • Subscribe
  • My folders
  • My alerts
  • Log in

Search

  • Advanced search
The Journal of Structured Finance
  • Institutional Investor Journals: Home
    • The Journal of Alternative Investments
    • The Journal of Derivatives
    • The Journal of Fixed Income
    • The Journal of Index Investing
    • The Journal of Investing
    • The Journal of Portfolio Management
    • The Journal of Private Equity
    • The Journal of Retirement
    • The Journal of Trading
    • The Journal of Wealth Management
    • Practical Applications
  • Register
  • Subscribe
  • My folders
  • My alerts
  • Log in
The Journal of Structured Finance

The Journal of Structured Finance

Advanced Search

  • Latest
  • Issues
    • Published Ahead of Print (PAP)
    • Current Issue
    • Latest Articles
    • Archive
  • About
    • Journal Information
    • Editorial Board
    • About IIJ
  • Information for
    • Advertisers and Sponsors
    • Agents
    • Authors
    • Institutions
  • Events
  • Videos
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook
Article

HAMP Modifications: Is Reset Risk an Issue?

Laurie S. Goodman and Jun Zhu
The Journal of Structured Finance Fall 2014, 20 (3) 17-26; DOI: https://doi.org/10.3905/jsf.2014.20.3.017
Laurie S. Goodman
is the center director for the Housing Finance Policy Center at the Urban Institute in Washington, DC. lgoodman@urban.org
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Jun Zhu
is the senior methodologist for the Housing Finance Policy Center at the Urban Institute in Washington, DC. jzhu@urban.org
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF
Loading

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Abstract

As of January 2014, more than 1.1 million homeowners had received a permanent modification of their mortgages through the government’s Home Affordable Modification Program (HAMP), which began in 2009. The program was intended to help homeowners avoid foreclosure as housing prices sank and unemployment soared nationally. Under HAMP, loans were modified so that the borrowers’ housing expenses were equal to 31% of their gross monthly income, or a 31% “front-end” debt-to-income ratio (DTI). Most HAMP modifications involve interest rate reductions, and although HAMP modifications are called permanent, most of those reduced interest rates last for only five years. Recently, concerns have been raised that HAMP interest rate resets, which begin later in 2014, could cause many borrowers to default on their modifications, thus lowering the number of program successes. Moreover, because many proprietary modification programs were modeled on HAMP, such concerns extend beyond HAMP. In this article, the authors look at the reset issue and demonstrate that it will manifest itself initially in 2016 and will be less severe than others have predicted.

  • Copyright © 2014 Urban Institute. All rights reserved. Not to be reproduced or redistributed without permission.
View Full Text

Log in using your username and password

Forgot your user name or password?

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.
PreviousNext
Back to top

In this issue

The Journal of Structured Finance: 20 (3)
The Journal of Structured Finance
Vol. 20, Issue 3
Fall 2014
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Structured Finance.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
HAMP Modifications: Is Reset Risk an Issue?
(Your Name) has sent you a message from The Journal of Structured Finance
(Your Name) thought you would like to see the The Journal of Structured Finance web site.
Citation Tools
HAMP Modifications: Is Reset Risk an Issue?
Laurie S. Goodman, Jun Zhu
The Journal of Structured Finance Oct 2014, 20 (3) 17-26; DOI: 10.3905/jsf.2014.20.3.017

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
HAMP Modifications: Is Reset Risk an Issue?
Laurie S. Goodman, Jun Zhu
The Journal of Structured Finance Oct 2014, 20 (3) 17-26; DOI: 10.3905/jsf.2014.20.3.017
Permalink:
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • HAMP HISTORY AND BACKGROUND
    • AN ANALYSIS OF THE DISTRIBUTION OF PAYMENT INCREASES
    • WHEN WILL RESETS BECOME A PROBLEM?
    • HOW MUCH WILL DEFAULTS INCREASE?
    • CONCLUSION
    • ENDNOTES
  • Info & Metrics
  • PDF

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Aircraft Pre-Delivery Payment Financing Transactions—Updated for 2018
  • Automotive Residual Values in a Changing Environment
  • Achieving IFRS Off-Balance-Sheet Treatment in Trade Receivables Securitizations
Show more Article

Similar Articles

Institutional Investor Journals
1120 Avenue of the Americas
New York, NY 10036

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
  • Visit IIJ on Facebook

ABOUT US

  • Home
  • About IIJ
  • Nobel Laureates
  • Events
  • Awards
  • Careers

OUR OFFERINGS

  • Guides
  • Permissions and Reprints
  • Digital Archives

GET INVOLVED

  • Advertise or sponsor
  • Publish your work
  • Subscribe
  • Agents

CUSTOMER SERVICE

  • Contact IIJ
  • FAQ's
  • Feedback
  • Publishing Schedule 2017/2018
  • Code of Ethics
  • Subscribe Now
  • Log In

© 2018 Pageant Media Ltd | All Rights Reserved | ISSN: 1551-9783 | E-ISSN: 2374-1325

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy