Home Affordable Modification Program (HAMP) Extended To December 2016

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

One of the few Mortgage Programs implemented during the Obama Administration which has had some success is the  Home Affordable Modification Program (HAMP).  The HAMP program was initially unveiled in 2009, and was set to expire at the end of last year, however, the Federal Housing Finance Agency (FHFA) and the U.S. Treasury Department extended the HAMP program until the end of this year, December 31, 2014.  With the HAMP program set to expire in about 6 months, the Federal Housing Finance Agency (FHFA) and the U.S. Treasury Department have agreed to once again Extended The Home Affordable Modification Program (HAMP) To December 2016.  This is a two year extension in hopes of the Housing and Job Markets improving during that time.

The HAMP program is meant to help struggling Homeowners to refinance into a lower rate in order for them to be able to afford their mortgage payments and stay in their home.  Under the HAMP program Lenders rework the Homeowner's Mortgage so their Debt-To-Income (DTI) Ratios are no higher than 31%, by doing one or more of the following:

  • Reducing the interest rate to as low as 2%.
  • Extend the Mortgage Term Period to 40 years.
  • Deffer a portion of the Principal Loan Balance into a no interest Balloon Loan which is not due until the property is sold or present mortgage paid off.

Lenders who agree to participate in the HAMP program receive an incentive fee from Fannie Mae and Freddie Mac to do so.  The latest available figures, April 30, 2014, show the HAMP program has helped 1,364,674 Homeowners to permanently modify their mortgage.  While 1,364,674 Homeowners may sound like a lot, it is not when compared with the number of Homeowners who are in trouble on their mortgage and do not qualify for the HAMP program.  So while the HAMP program has had some success, it has been limited success.  However, for 1,364,674 Homeowners the HAMP program was the difference between them losing their home or being able to keep it.

Hopefully with the Home Affordable Modification Program (HAMP) Extended To December 2016, several more Homeowners will be able to avoid foreclosure, and stay in their homes.  For more information on the HAMP program visit MakingHomeAffordable.gov or call (888) 995-4673.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator 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, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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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 (15)

Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

George: With nearly 1.4M homeowners assisted thus far, it is good news to hear that HAMP will be extended through 2016!

Jul 09, 2014 10:18 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, George....that's good news for so many people.... smaller payment and less of a term....

Jul 09, 2014 10:24 PM
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Hi George: Limited success is better than no success it all. Don't you agree?

Thanks for the information.

Jul 09, 2014 10:52 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Anita yes it is good news, because it is one of the options homeowners have right now to help them avoid foreclosure, and anything that helps homeowners stay in their home is a positive for me.

Barbara the much lower interest rate, and extending the pay back period from 30 to 40 years substantially reduces the monthly payment and makes it much more possible to meet the monthly payment especially if one of the people on the mortgage has lost their job.

Maria yes I agree limited success is much better than no success :) :) :)

Jul 09, 2014 11:25 PM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

George, great news and lots of good information in this post! Thanks for writing!

Jul 09, 2014 11:33 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

George, if this program can assist homeowners into a lower interest rate, glad it got extended!

Jul 09, 2014 11:41 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Dagny glad you found the information helpful

Joan I think it was the right thing to do but it is not the long term answer.  Getting people back to work so they can afford their mortgages is what needs to happen, and hopefully Washington will wake up and realize that in stead of just giving it lip service.

Jul 10, 2014 01:44 AM
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, definitely good news and even with HAMP'S limited success there has still been a lot of people helped.

Jul 10, 2014 08:25 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nick I agree, and hopefully the programs success rate will improve in the next 18 months.

Jul 10, 2014 09:04 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, at last this is some good news for struggling homeowners and the housing market.  Thanks for sharing!

Jul 10, 2014 11:10 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George this will be great for some homeowners, so I am glad HAMP will hang around.

Jul 10, 2014 02:57 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning George. As much good as there has been with this program, there have many repeat defaults, certainly no fault of the administration. Some will continue to fail no matter how many chances they are given.

Jul 10, 2014 08:18 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George... as nothing is perfect, I would say it's a great idea to keep helping people who are having problems not of their own making stay in their homes. We don't need more distressed properties in the market dragging down home values.

Jul 10, 2014 09:58 PM
ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

Hi George - hopefully this will help thousands of homeowners over the next couple of years.  It is not an easy program to get into but does provide benefit to those who qualify.

Jul 11, 2014 01:57 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

George, as you say every little bit help and it is just a little bit...I get most of my short sales from homeowners who don't qualify for HAMP and were yanked around.  Thanks for letting us know.

Jul 11, 2014 09:29 PM

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