Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program

Sumit Agarwal, Gene Amromin, Itzhak Ben-David, Souphala Chomsisengphet, Tomasz Piskorski and Amit Seru

No 18311, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its targeted indebted households. This shortfall was in large part due to low renegotiation intensity of a few large intermediaries and was driven by intermediary-specific factors. Exploiting regional variation in the intensity of program implementation by intermediaries suggests that the program was associated with lower rate of foreclosures, consumer debt delinquencies, house price declines, and an increase in durable spending.

JEL-codes: E60 E65 G18 G21 H3 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-mac and nep-ure
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Citations: View citations in EconPapers (39)

Published as Sumit Agarwal & Gene Amromin & Itzhak Ben-David & Souphala Chomsisengphet & Tomasz Piskorski & Amit Seru, 2017. "Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 654-712.

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Related works:
Journal Article: Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program (2017)
Working Paper: Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program (2016)
Working Paper: Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program (2013)
Working Paper: Policy Intervention in Debt Renegotiation: Evidence from the Home Affordable Modification Program (2012)
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