Making Home Affordable Program Receives an Extension

In alignment with the Federal Housing Finance Agency’s extension of the Home Affordable Refinance Program (HARP), the US Department of the Treasury and the US Department of Housing and Urban Development (HUD) announced the extension of the Making Home Affordable Program. Set to expire at the end of 2013, the program has been extended to December 31, 2015. Included in the Making Home Affordable program is the streamline modification initiative, HAMP, or Home Affordable Modification Program, that was designed to modify “the terms of a homeowner’s [Fannie Mae or Freddie Mac guaranteed] mortgage to reduce their monthly payment to prevent foreclosure.” 

According to HUD and the Treasury, “nearly 1.6 million actions have been taken through the program to provide relief to homeowners and nearly 1.3 million homeowners have been helped directly by the program.” Furthermore, “more than 1.1 million homeowners have received a permanent modification of their mortgage through HAMP, with a median savings of $546 every month, or 38 percent of their previous payment.” HUD Secretary, Shaun Donovan, anticipates that the extension of the Making Home Affordable Program will be vital to helping creditworthy homeowners stay in their homes while helping to further sustain the housing recovery.

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