The Obama administration on Thursday extended a key homeowner mortgage support program for two more years through 2015 in a bid to help more struggling homeowners to get access to mortgage relief and buttress property sector recovery.
U.S. Department of Treasury and Department of Housing and Urban Development would extend an extension of the administration's Making Home Affordable Program through December 31, 2015, the Treasury Department said in a statement.
"The housing market is gaining steam, but many homeowners are still struggling," said U.S. Treasury Secretary Jacob Lew.
"Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure. Extending the program for two years will benefit many additional families while maintaining clear standards and accountability for an important part of the mortgage industry," Lew said.
Since its launch in March 2009, about 1.6 million actions have been taken through the program to provide relief to homeowners and nearly 1.3 million homeowners have been helped directly by the program. The Making Home Affordable Program includes the Home Affordable Modification Program or HAMP, which modifies the terms of a homeowner's mortgage to reduce their monthly payment to prevent foreclosure.
As of March 2013, more than 1.1 million U.S. homeowners have received a permanent modification of their mortgage through HAMP, with a median savings of 546 U.S. dollars every month, or 38 percent of their previous payment, noted the statement.