This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obama Administration Extends Modification Program to 2015

NEW YORK ( TheStreet) -- The Treasury Department and the U.S. Department of Housing and Urban Development announced Thursday that the government's mortgage modification program will be extended by another two years to Dec. 31, 2015.

The extension of the Home Affordable Modification Program (HAMP) follows a similar extension of the government's Home Affordable Refinance Program (HARP) earlier this year for loans guaranteed by Fannie Mae and Freddie Mac.

"The housing market is gaining steam, but many homeowners are still struggling," said Treasury Secretary Jacob J. Lew. "Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure."


Over 1.1 million borrowers have received a permanent mortgage modification since the program's launch in 2009. That is far short of the Obama Administration's initial target of 4 million modifications.

The program has been criticized in the past for being too restrictive in its relief efforts. While improvements to the HAMP program have been made in recent years, proprietary modifications by banks and non-bank servicers far outpace that of HAMP modifications.


But the government points to data from the Office of the Comptroller of the Currency that shows that borrowers save more on a HAMP modification than on private modifications. The HAMP program also has a lower re-default rate than proprietary modifications, the data shows.

The HAMP program also helped set the standard for modifications in the servicing industry.

HAMP lowers the monthly mortgage payment for borrowers in default or struggling to make their payments by lowering the interest rate, extending the term and in some cases reducing the principal on the mortgage. It is available to borrowers who took out a mortgage before Jan. 1, 2009, who can prove financial hardship and who can show sufficient documentation of income.

-- Written by Shanthi Bharatwaj New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs