``The most striking issue which is a byproduct of HAMP, is the story of what happens to a borrower who has a stellar credit history, has done everything possible to keep up with their mortgage payments, which in many cases has included emptying out their retirement plans. In this case the borrower when given a trial modification, which is the first step in the loan modification process, and makes reduced payments to their lender. The lender places the payments in a suspense account, which means that they are not used towards the payment of principal and interest. The bank considers these to be partial payments, so they report to the credit bureaus that the borrower is late in making their mortgage payments.''

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