This article was last updated on May 30
The Obama administration, via the Federal Housing Finance Agency (FHFA) has directed government sponsored entities Fannie Mae and Freddie Mac to extend the Home Affordable Modification Program (HAMP) through year-end 2015. The HAMP program allows struggling homeowners to refinance to a lower rate and stay in their homes. he HAMP program was scheduled to expire at the end of this year. Also announced today was the extension of HAMP for non-Fannie Mae and Freddie Mac loans.
The HAMP program works by helping borrowers with loans originated before Jan. 1, 2009, to re-work loan terms to lower monthly payments to about 31% of their incomes, and reduce interest rates. Lenders get an incentive fee from Fannie Mae or Freddie Mac to encourage participation. If you’re a mortgage borrower in need of help visit MakingHomeAffordable.gov for more information or call 1-888-995-HOPE (4673). There is no charge for this service and you can work with HUD-approved counselors to help you through the process.