According to Jack Lew, U.S. Secretary of the Treasury, the Making Home Affordable Program (MHA) for non-Fannie Mae and Freddie Mac mortgage loans has been extended through December 31, 2015. It is the second extension of the foreclosure prevention program, which was currently set to expire on December 31, 2013. On the heels of the announcement, the Federal Housing Finance Agency (FHFA) announced that it will also extend the Home Affordable Modification Program (HAMP) for loans under Fannie and Freddie through the end of 2015. The FHFA will also extend their new foreclosure prevention streamlined modification program to December 31, 2015. The streamlined program offers loan modifications without documentation of financial hardship.
According to Treasury Secretary Jacob Lew, the extension is intended to help prevent foreclosures and assist the middle class. "Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure."
HAMP is a foreclosure prevention program that provides loan modifications to struggling homeowners, which also includes Home Affordable Foreclosure Alternatives (HAFA) and a Second Lien Modification Program. The government's refinance program, Home Affordable Refinance Program (HARP), had previously been extended through December 31, 2015.
The extension is an ongoing effort to prevent foreclosures by modifying mortgages for at-risk homeowners. Through the first quarter of 2013, approximately 1.1 million homeowners benefited from a HAMP loan modification, resulting in an average monthly savings of $546 a month. By extending the program, Fannie Mae, Freddie Mac, and non-Fannie and Freddie homeowners will all be given additional time to seek a loan modification that will reduce their monthly payment and bring their loans current.
Acting Director Edward J. DeMarco supports the FHFA's extension, stating, "These extensions keep two valuable foreclosure prevention programs available to those who need them. The extensions also align the end date for three key assistance programs that were developed in response to the housing crisis."
Homeowners can learn if they qualify for one of these programs by talking to their lender or visiting Making Home Affordable, Fannie Mae, or Freddie Mac.
Anna Cuevas, ex-bank executive turned homeowner advocate known as "America's Loan Modification Guru," has empowered and guided thousands of Americans in keeping their homes from foreclosure through loan modification self-advocacy. A popular blogger (askaloanmodguru.com), Cuevas has been called a "superhero of the loan modification industry" and has been nominated for CNN's Heroes. She is the #1 bestselling author of SAVE YOUR HOME Without Losing Your Mind or Money.