Federal Program for Distressed Homeowners Is Extended
Source: New York Times
Despite signs of revival in housing, the Obama administration announced on Thursday an extension of its principal program for helping distressed homeowners to get mortgage modifications and avoid foreclosure.
Jacob J. Lew, the Treasury secretary, and Shaun Donovan, secretary of the Department of Housing and Urban Development, said the Making Home Affordable program, which includes the Home Affordable Modification Program, known as HAMP, and related consumer protections, would remain in effect through 2015. They were due to lapse at the end of this year.
Under HAMP, the federal government gives financial incentives to mortgage providers to modify the loans of eligible borrowers so the homeowners’ monthly payments do not exceed 31 percent of their monthly income. Beneficiaries have included homeowners with negative equity where property values plummeted and those who lost jobs.
“The housing market is gaining steam, but many homeowners are still struggling,” Mr. Lew said in a joint statement with Mr. Donovan. “Extending the program for two years,” he added, “will benefit many additional families while maintaining clear standard and accountability for an important part of the mortgage industry.”
Read more: http://www.nytimes.com/2013/05/31/business/obama-administration-extends-making-home-affordable-program.html