HAMP (Home Affordable Modification Program)

Over the next few days I will be giving a brief explanation acronyms for some Federal Programs that we have heard much about, but may not know what the program or acronym stand for.   I will not be going into in debth explanations of each, because the purpose of these blogs is to give just enough of an explanation that those reading them will be able to have a basic understanding of these programs, and be able to remember it. 

The Federal Programs that I will Covering are:

• HAMP
• HOPE
• HOMEPATH (not an acronym)
  
• HARP
• FEHLP
• EMAP

I might not stay with that exact order but these will be the programs that I will be covering.  So lets start off with HAMP.

HAMP (Home Affordable Modification Program)

Came out of the 2009 Homeowner Affordability and Stability Plan which established the Making Home Affordable Program, which is administered
by the U.S. Department of Treasury.  There are two parts to this
program:

• A refinance option and
• A modification option

HAMP is the Federal Modification Program - Servicer administered program for non-HUD Loans.  HAMP:

• Capitalizes arrearages
• Reduces interest rates
• Extends the Payment time frame
• Defers the payment of the principal in order to bring the monthly payment down to 31% of the Borrower's Gross Monthly Income

Before the loan is modified, the Borrower must successfully complete a trial payment period, and MUST:

• Be employed
• Occupy the house as their primary residence
• Have a mortgage payment that is more that 31% of their monthly gross (pre-tax) income.
• Have a financial hardship and are either delinquent or in danger of falling behind.
• Have sufficient, documented income to support the modified payment

In the next blog I will cover HOPE aka H4H.

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.