In 2009, President Obama announced the details of the Making Home Affordable Program, intended to help millions of families avoid foreclosure. The program began that March with the Home Affordable Modification Program (HAMP), to provide assistance to struggling homeowners.
There are two parts to the Making Home Affordable Program. The first allows borrowers in good standing, whose loans are owned or securitized by Fannie Mae or Freddie Mac, to refinance and take advantage of the current low interest rates, with a loan of up to 105 percent of the current value of the house.
The second encourages lenders and services to modify loans for borrowers in default, or about to go into default, so that the borrower pays no more than 31 percent of their gross income for mortgage payments (including principal, interest, taxes, insurance and condo or homeowners’ association fees).
Learn more about loan refinancing and modifications under the President's "Making Home Affordable" initiative by visiting www.MakingHomeAffordable.gov