Purpose: Making Home Affordable is a plan to stabilize the housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels. The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.
Sponsors: Treasury and HUD
How it Works:
Home Refinance Program. Eligible borrowers who are current on their mortgages but have been unable to take advantage of today’s lower interest rates because their homes have decreased in value, have the opportunity to refinance. Through the Home Affordable Refinance Program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they placed in mortgage backed securities.
Home Modification Program. Borrowers who are struggling to keep their loans current or who are already behind on their mortgage payments can qualify for loan modification. Owners must have an unpaid principal balance that is equal to or less than $729,750, have a loan that was originated on or before January 1, 2009, have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of gross monthly income, and have a mortgage payment that is not affordable.
Status Report: By providing mortgage servicers with financial incentives to modify existing first mortgages, the government hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
Lifespan: March 4, 2009 to December 31, 20012.
For More Information: http://makinghomeaffordable.gov/index.html