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.