What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a Washington state law that helps homeowners who are struggling to make their mortgage payments. This program was created to help homeowners by allowing them to modify the terms of their mortgage loan, reducing monthly payments to an affordable amount. HAMP is a part of the Making Home Affordable (MHA) initiative and is administered by the US Department of Treasury and the US Department of Housing and Urban Development (HUD). HAMP is designed to assist homeowners who are experiencing financial hardship and those who have been unable to refinance their mortgages. It offers a long-term solution to homeowners who are in danger of foreclosure. The HAMP modification program allows a lender to modify the terms of a mortgage loan, such as the principal balance, interest rate, monthly payment, and loan duration. Modifications to the loan must result in a monthly payment reduction for the borrower. After the modification is approved, lenders must then report the loan to the national credit-reporting agency to ensure accuracy. In order to qualify for HAMP, borrowers must meet certain requirements, including having a loan that is more than two months delinquent, having a monthly mortgage payment that is higher than 31 percent of their pre-tax monthly income, and not having more than $729,750 in debt. Borrowers must also be able to demonstrate that they have sufficient income to make the modified payments. HAMP is an important law in Washington because it helps homeowners who are struggling with their mortgage payments. It provides homeowners with an affordable solution to their financial difficulty and can help them stay in their homes. By providing an affordable modification, HAMP makes it possible for borrowers to keep their homes and avoid foreclosure.

Related FAQs

What is the Right to Financial Privacy Act?
What is the Investment Company Act?
What is the Home Owners’ Loan Act?
What is the Fair and Accurate Credit Transactions Act?
What is the Equal Credit Opportunity Act?
What laws protect personal banking information?
Are there any regulations governing ATM use?
What is the Fair Credit Billing Act?
What is the Home Affordable Modification Program?
What is required for a loan to be considered “secured”?

What is the Home Affordable Modification Program?

Related FAQs

Related Blog Posts