HAMP Program Expansion

On January 27, Treasury and the Obama Administration announced updates to the HAMP program which will aim to extend the reach of HAMP to a broader pool of homeowners. The updates to the program include: (i) extending the program through December 31, 2013 (which conforms to the extended deadline for the HARP program); (ii) providing for more flexible eligibility criteria, including the DTI and occupancy standards; (iii) increasing incentives for principal reduction from between 6 and 21 cents on the dollar to between 18 and 63 cents on the dollar; and (iv) offering principal reduction incentives for loans owned or guaranteed by Fannie Mae or Freddie Mac. Treasury Release.