Making Home's Affordable Update (H4H)- The Feds rolling the dice

Making Home's Affordable Update (H4H)- The Feds rolling the dice

interest_diceIn an effort to fill in some of the gaps exposed in the initial Making Home Affordable (MHA) program, Washington has stepped up its efforts to assist more distressed homeowners. In a press release on April 28th, the U.S. Treasury announced an update to the program designed to assist nearly 50% of those homeowners seeking relief from the MHA program.

What’s New?

By some estimates, nearly 50% of all struggling homeowners actually have two mortgages. This is because many borrowers chose to split their mortgage in two to avoid an additional Private Mortgage Insurance monthly payment. The problem is, having two mortgages complicates attempts to refinance or modify home loans.

To minimize these complications, the new legislation is intended to assist mortgage servicers with new guidelines that give incentives for participation and help decrease payments for homeowners. These incentives have also been extended to homeowners enrolled in the program to assist them in making their future payments on time.

The news announcement also addressed the Hope for Homeowners (H4H) program created last year. The biggest news relating to H4H is that participating servicers will be required to look at H4H in tandem while considering a loan modification. In order to support more investor participation, incentives will be extended to the servicer and the Treasury will continue their buying program to help rates stay attractive as well.

What Does This Mean for You?

Despite these additional guidelines, the Making Home Affordable program is still best suited for helping a specific group of struggling homeowners.

If you’re interested in refinancing or looking into a modification, I’d be happy to help you examine your options. Even if a modification isn’t right for you, there may be an opportunity to refinance your mortgage and take advantage of today’s historic lows.)

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