Home Affordable Modification Program or HAMP Law and Legal Definition
A Home Affordable Modification Program or HAMP can help up to 3-4 million homeowners who are at risk by reducing the monthly mortgage payments. If a homeowner cannot afford to make the monthly loan payments, then the homeowner may be qualified for a loan modification. Millions of homeowners who are regular in their mortgage payments, but having difficulty making the payments and the borrowers who have already missed one or more payments may be eligible for modification.
The Treasury Department has announced the program guidelines after working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency. The program guidelines are expected to become standard industry practice in continuing affordable and sustainable mortgage modifications. The servicers can modify eligible mortgages under the Modification program with the information available. The Modification program expires on December 31, 2012.