Two federal programs intended to help struggling homeowners have been extended. The Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP), both launched in 2009 to boost the housing recovery by limiting foreclosures, were set to end in December.
At a speech in Los Angeles on Friday, Mel Watt, director of the Federal Housing Finance Agency, announced that the deadline has been pushed forward to the end of 2016.
HAMP uses funds from the Troubled Asset Relief Program (TARP) to pay lenders to modify loans of troubled homeowners, creating more affordable payments. HARP allows borrowers with little or no equity in their home to refinance to a lower-interest rate mortgage.
Despite low interest rates and rising home values, many homeowners who could be taking advantage of these programs are not.
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