WASHINGTON (5/31/13)--Two government programs intended to keep troubled borrowers in their homes have been extended through 2015.
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to extend the Home Affordable Modification Program (HAMP) beyond its scheduled sunset at the end of this year and the streamlined modification initiative beyond its August 2015 sunset.
HAMP is designed to help homeowners keep their loans current, or those who are already behind on their mortgage, by reducing their monthly payments. The streamlined modification initiative, which was launched by FHFA on March 27, gives borrowers who are at least 90 days late another path to avoid foreclosure and lower their monthly payments without requiring financial or hardship documentation.
The FHFA announcement followed a similar one earlier in the day from the U.S. Treasury Department and the U.S. Department of Housing and Urban Development that extended HAMP for non-Fannie Mae and Freddie Mac loans. FHFA's directives make the extension applicable to loans owned or guaranteed by Fannie Mae and Freddie Mac.
The FHFA reported that since the first full quarter in conservatorship, which was the fourth quarter of 2008, Fannie Mae and Freddie Mac have completed more than 2.7 million foreclosure prevention actions. Approximately half of these actions have been permanent loan modifications, including more than 435,000 permanent HAMP modifications.