The incident resulted into bad publicity plan for the HASP, and potential applicants became more skeptical about availing the loan modification facility, since they thought their applications would not be entertained in the right manner. * The Congress passed the bill in may, which enabled the home loan modification services providers with more freedom and flexibility while providing the credit to the individuals applying for loan. However, majority of the insurance companies failed to comply in reassessing the existing mortgage values and make it more compatible with the HASP plan. This made it difficult for the loan providers in providing the required flexibility to the applicants, since mortgages provide them with the protection against possible loan defaults. * Experts feel the HASP plan is far more complex than originally thought, and it is going to be difficult to implement it effectively. The borrower needs to know and understand the guidelines properly to benefit effectively from the program. One of the major objectives of the plan is to avoid foreclosures.

However, there are not enough trained personnel who can guide the applicants in working out the modification as per the debt incurred by the borrower. The HASP is to be customized to address the exact financial problem faced by the debtor, to make the monthly payments and the loan itself more affordable. * According to Nicholas retsina, the director of Harvard universities Joint Center for housing studies, the HASP is gradually losing its focus in providing the loan change help, as far as the original guidelines are concerned. The keeps on changing market situation dynamically and it changing is imperative the Obama plan dynamically modify itself with the conditions. On practical grounds, the program fails itself to adjust itself to the market conditions, which makes it less effective.

It is suggested the original guidelines be replaced by blanket guidelines to make the program more dynamic and beneficial to the people. * A major mistake on the part of the Obama administration is the dismissal of all loan modification services offered by private law firms that usually negotiate the loan modifications and provide custom made solutions that correctly cater to the debt conditions of the debtor. Loan modification can be a complex process for the average debtor to understand, and work out on acceptable solution. That is where law firms and experts come in, however the plan does not provide enough opportunities for these individuals to contribute much as far as the debt suffered by the borrower is concerned. About author: Even though the basic purpose of the Obama administration’s Home affordability and stability program (HASP) is to help out struggling American homeowners to deal more effectively with their mortgage loan modification and debt issue, it is a fact that the program has yet to achieve the desired success.