When Barack Obama first unveiled the Home Affordable Modification Programme (HAMP) in March 2009, the hope was to modify 3m-4m mortgages by subsidising payment reductions through the Troubled Asset Relief Programme (TARP), a bail-out fund.

ECONOMIST: America's housing market

Former HUD official Glaser says the legislation should include a provision that if mortgage servicers modify loans, they'll be safe from cram-downs, even if the modification is unsuccessful and the home ends up in foreclosure.

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