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The Home Affordable Modification Program (HAMP) was established with a critical mission: to assist homeowners at risk of foreclosure by offering them reduced monthly mortgage payments that are both affordable and sustainable over the long term. This initiative was created to support families grappling with financial difficulties by adjusting their mortgage terms. To be eligible for HAMP, homeowners must demonstrate documented financial hardship and prove their ability to manage their mortgage payments after receiving a modification.

HAMP operates as a voluntary program that enables mortgage servicers to modify loan terms to prevent foreclosure while protecting taxpayer interests through a pay-for-success model. This model ensures that funds are allocated only when transactions are completed successfully and remain in place as long as contractual obligations are met, with disbursements stretching over many years.

The program has proven effective in encouraging mortgage servicers to lower monthly payments for qualifying homeowners. Participants in HAMP typically experience a significant reduction in their monthly payments, with a median decrease of more than $530. Beyond these direct savings, HAMP has also motivated private lenders to offer modifications without additional costs to taxpayers. The program has set industry-wide standards for affordable mortgage modifications, enhancing the overall approach to mortgage assistance and making private loan modifications more accessible.

Through HAMP, nearly 5 million Americans have received vital mortgage assistance, helping them avoid unnecessary foreclosures. The Making Home Affordable (MHA) program, which oversees HAMP, ensures that servicers fairly evaluate homeowners and adhere to program guidelines through thorough compliance reviews. The Treasury mandates that servicers continually improve their processes to effectively support homeowners in need, focusing on ongoing compliance and program effectiveness.