4 Important Enhancements: More Help for Homeowners

Make Home Affordable Program - HAMP

Improvements to the Home Affordable Modification Program (HAMP) – More Help for Homeowners

1. Temporary assistance for unemployed homeowners while they search for re-employment

  • Mortgage payments reduced to affordable level for a minimum of three months, and up to 6 months for some borrowers, while eligible homeowner looks for new job

2. Requirement to consider alternative principal write-down approach and increased principal write-down incentives

  • All servicers required to consider alternative modification approach that emphasizes principal write-down with incentives based on the dollar value of the principal reduced
  • The principal reduction and the incentives will be earned by the borrower and investor based on a pay-for-success structure

3. Improvements to reach more borrowers with HAMP modifications

  • Improvements to borrower solicitation requirements including clear performance timeframes for both servicers and borrowers and a prohibition against initiation of a new foreclosure referral when a borrower is cooperating with the servicer to obtain a modification
  • Borrowers in active bankruptcy must be considered for HAMP upon request  Increased incentives for servicers to provide permanent HAMP modifications  Expansion of HAMP to include homeowners with FHA loans

4. Helping homeowners move to more affordable housing

  • Relocation assistance payments to homeowners receiving foreclosure alternatives doubled
  • Increased incentives to servicers and lenders, including increased incentives for extinguishment of subordinate liens, to encourage more short sales and other alternatives to foreclosure

Download the HAMP Enhancements Overview report (pdf) for more information.

Source:  The Washington Report (NAR)



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