Obama Administration Extends MHA, HAMP Modification Programs Through 2015

The Obama Administration has extended its Making HomernAffordable (MHA) program through December 2015. The action, takenrnThursday brings that program into line with new expiration datesrnannounced earlier for the Home Affordable Refinance Program (HARP)rnand the Streamlined Modification Initiative for homeowners withrnmortgages owned or guaranteed by Fannie Mae and Freddie Mac (thernGSEs). </p

MHA is run jointly by the Departmentsrnof Treasury and Housing and Urban Development. A number ofrnforeclosure prevention programs operate under its aegis including thernHome Affordable Modification Program (HAMP), 2MPrnsecond lien modification program, Principal Reduction AlternativernProgram (PRA) and Home Affordable Foreclosure Alternatives (HAFA)rnprogram. MHA programs were originally scheduled to sunset onrnDecember 31, 2013.

“The housing market isrngaining steam, but many homeowners are still struggling,” saidrnTreasury Secretary Jacob J. Lew. “Helping responsible homeownersrnavoid foreclosure is part of our wide-ranging efforts to strengthenrnthe middle class, and Making Home Affordable offers homeowners somernof the deepest and most dependable assistance available to preventrnforeclosure. Extending the program for two years will benefit manyrnadditional families while maintaining clear standards andrnaccountability for an important part of the mortgagernindustry.”

Since MHA was launched in March 2009, about 1.6rnmillion actions have been taken through the program to provide reliefrnto homeowners and nearly 1.3 million homeowners have been helpedrndirectly. As of March 2013, more than 1.1 million homeowners havernreceived a permanent modification of their mortgage through HAMP,rnwith a median savings of $546 every month – or 38 percent of theirrnprevious payment. </p

MHA has also put into place protectionsrnfor homeowners that include requirements for mortgage servicersrnregarding clear and timely communications with homeowners andrnprotections to ensure that homeowners are evaluated for assistancernbefore being referred to foreclosure. </p

“The Making Home AffordablernProgram has provided help and hope to America’s homeowners,”rnsaid HUD Secretary Shaun Donovan. “Families across the countryrnhave used its tools to reduce their principal, modify theirrnmortgages, fight off foreclosure and stay in their homes – helpingrnfurther stimulate our housing market recovery. And with thisrnextension, we ensure that the program keeps supporting communitiesrnfor years to come.”

Freddie Mac spokesperson Tracy Mooney,rnSenior Vice President of Single Family Servicing and REO said of thernextension, “Thanks to today’s action by the ObamarnAdministration, Freddie Mac will extend HAMP to financially troubledrnborrowers through 2015. We have helped more than 830,000 Freddie Macrnborrowers avoid foreclosure since 2009 and nearly 230,000 of thesernfamilies were helped through HAMP, which has played a critical rolernin the housing recovery now underway. We strongly encourage borrowersrnfacing financial challenges to talk to their servicers about HAMP orrnFreddie Mac’s standard mortgage modification.”

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