HAMP (Home Affordable Modification Program)

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

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
  • 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

  • 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.



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.


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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

Comments (9)

Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- These acronyms are enough to make my head spin. How successful have these been overall -- or which one was successful at all?

Jan 24, 2012 12:53 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George - I am looking forward to this series.. Just when I think I have this down, I realized I need some explanations!

Jan 24, 2012 01:20 PM
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO


Are lien holders using this program?

Ann Hayden in Wildwood, MO

Jan 24, 2012 03:34 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude


Great explanation. It's hard to keep up with all these"new" programs. How is HAMP working, in your opinion?


Jan 24, 2012 03:39 PM
Ron Cooks
The Real Estate Marketplace - Killeen, TX
Texas Real Estate, Ft Hood/Killeen Homes for Sale

George, thanks for the lesson.  There is still so much I don't know about your industry, I'm looking forward to the next few lessons.

Jan 24, 2012 09:23 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Barbara some of them have had success like EMAP, FEHLP, and Homepath, but HAMP and HARP in my opinion have been a big flop.

Joan we all do :)

Ann yes they are using some of them.

Jeff, HAMP and HARP have not worked in my opinion so far.  The one program that really worked for us was FEHLP and that program does not have funding right now.

Ron I hope I can help a little bit.

Jan 25, 2012 09:46 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Thanks, George, for your thoughts. I always appreciate them. Happy New Year as well!

Jan 26, 2012 04:46 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT
George - I agree HAMP And HARP have been nearly impossible to qualify for. Looking forward to reading your series.
Jan 27, 2012 02:24 PM
Sue Ellett
Coldwell Banker Realty - Austin, TX
Austin, TX, Lake Travis, Dripping Springs

Thanks for posting.  I just re-blogged.

Jan 29, 2012 02:15 AM

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