The Obama administration has previewed its revisions to the Home Affordable Modification Program (HAMP).
According to a Bloomberg report, the revised HAMP guidelines will relax the current HAMP rules while tripling the program's incentives to participating banks. The program will also pay Fannie Mae and Freddie Mac to forgive debts on homes that have lost value. The HAMP changes are not connected to the new federal mortgage finance program that the President Obama alluded to in last week's State of the Union speech.
Bloomberg estimates that approximately 900,000 homeowners have successfully used HAMP for refinancing, saving an average of about $500 a month. However, the program was originally envisioned as helping 4 million borrowers.
