Foreclosure Prevention — Administrative Burden Reduction
US mortgage assistance program (HAMP-era evaluation) · United States · 2018
Summary
Among households at similar risk of foreclosure, those facing simplified application processes received help at dramatically higher rates—and their foreclosure rates fell as a result. The finding illustrates a general principle: when take-up of a beneficial program is below 100%, the bottleneck is usually administrative burden, not lack of need or eligibility. Reducing friction is often more effective than increasing outreach.
Research question
"Does reducing application complexity and wait times increase benefit receipt and prevent foreclosures?"
Methodology
Intervention
Streamlined application process with reduced documentation requirements and faster review
Assignment
Quasi-experimental (difference-in-differences with matched controls)
Sample size
~200,000 households
Primary outcome
Benefit receipt rate; foreclosure rate
Effect estimate
+23% benefit receipt rate; −7.5% foreclosure rate
Decision
Administrative simplification incorporated into subsequent housing assistance program design
Result
Positive
+23% benefit receipt rate; −7.5% foreclosure rate
Evidence strength
Moderate
Quasi-experimental design; causal interpretation requires care.
Replication status
Partially replicated
Institution
US mortgage assistance program (HAMP-era evaluation)
Location
United States
Year
2018
Policy area
Administrative Process
Mechanism
Simplification