What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a banking law in the state of Georgia that helps struggling homeowners stay in their homes. It was created in 2009 as part of the Obama Administration’s Making Home Affordable Program to help homeowners who are at risk of foreclosure. HAMP provides incentives to lenders to modify certain loan terms, such as reducing the interest rate, extending the loan term, and giving principal forbearance to make payments more manageable. Homeowners that meet the eligibility requirements can have their loan payments reduced to no more than 31 percent of their monthly gross income. The program also offers homeowners additional assistance in the form of an interest rate reduction or principal forbearance. HAMP is available to homeowners whose mortgages are owned or backed by Freddie Mac or Fannie Mae. The program also applies to eligible mortgages not insured or guaranteed by these two agencies. To qualify, homeowners have to show that they have suffered a financial hardship that has made it difficult to make their mortgage payments, such as job loss, reduction in income, or illness. A homeowner must also demonstrate that they have sufficient income to make the reduced payments under the HAMP modification.

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What is the Home Affordable Modification Program?

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