Home Affordable Modification Program
Data File:
Date:
February 18, 2009
Policy Area:
Sector Policy (Non-Financial)
Action Type:
Regulatory Change
Maximum Amount:
$50.00 billion
Amount Spent:
$28.75 billion
Deficit Impact:
$28.75 billion To stabilize the housing market, the Treasury announced on February 18 the Home Affordable Modification Program, part of the Making Home Affordable Program (MHA), to offer assistance to millions of homeowners by reducing mortgage payments. The program gives homeowners the opportunity to modify their mortgages as well as an opportunity to refinance GSE loans, which can lower monthly payments.
The program is designed to provide assistance to up to 3-4 million eligible homeowners before the end of 2012. Between loans covered from over 50 servicers and loans owned or guaranteed by the GSEs, more than 85 percent of all mortgage loans in the country are now covered by the program.
On Sept. 24, 2009 a Treasury release reported that, as of September 9, more than 360,000 trial modifications were underway and 570,000 trial modifications had been offered under the program.
Notes:
Maximum amount is the level of funding announced by the Treasury Department. Amount spent represents the total amount allocated to all mortgage servicers as of 7/23/2010, as reported on the Treasury's transaction reports.
Deficit impact is derived from CBO's subsidy rate for the Home Affordable Mortgage Program (100%), which requires no repayments and therefore constitutes a full subsidy. This information was most recently reported in CBO's report on TARP transactions through June 17, 2009.
