The house (controlled by Republicans) made a basically symbolic vote yesterday to repeal the Obama administration’s Home Affordable Modification Program (HAMP), but a number of Democrats also voted with the Republicans. Why? The loan mod program isn’t working.

Set up to use TARP funds at the height of the housing/financial crisis, the intent was to help 3 – 4,000,000 troubled homeowners modify their loans so they could stay in their homes. But as you read my previous post (“Loan mods and drama in BK court this morning”) loan mods have been virtually impossible to navigate.

With the Dems in control of the Senate and Obama certainly not willing to kill his own program, I don’t see much chance of HAMP being killed off. Rather, what I see is renewed pressure from the fed on the servicers to get their act together. That pressure is literally on today as the fed and the 50 states’ attorneys general meet with representatives of the 5 largest banks to start on negotiations to mitigate loan mods, short sales and foreclosure processes.