The Obama administration’s Making Home Affordable initiative is being extended. In addition, the administration is taking steps to reignite non-agency securitizations.
The Homeowner Affordability and Stability Plan was unveiled in early 2009 by the U.S. Department of the Treasury.
Part of the plan was the Making Home Affordable initiative that includes government-subsidized loan modifications and refinances.
Through the Home Affordable Modification Program, servicers have permanently modified 1,364,674 mortgages as of April 30.
The Home Affordable Refinance Program has enabled 3,154,578 borrowers — including many who are in a negative equity position — to refinance as of the end of April.
Both HAMPÂ and HARP were originally scheduled to end last year. But HARPÂ was subsequently extended until the end of 2015, while HAMPÂ was extended until the end of this year.
On Thursday, a joint announcement from the Department of Housing and Urban Development and the Treasury Department indicated that the Making Home Affordable initiative will be extended until at least Dec. 31, 2016.
The statement also indicated that HUD and the Treasury Department are partnering to support a multifamily mortgage risk-sharing program.
“With the new HUD-Treasury partnership, the Federal Financing Bank will use its authority to finance FHA-insured mortgages that support the construction and preservation of rental housing,” the statement said. “The first partnership — announced today — with the New York City Housing Development Corp. will help restore affordable rental housing damaged by Superstorm Sandy in Far Rockaway, Queens.”
The announcement additionally highlighted how many of the largest investors have not returned to the private-label mortgage-backed securities market. The lack of a vibrant PLSÂ market has limited home buyers to agency loans.
So the Treasury is publishing a request for comment in the Federal Register. It is also planning to host a series of meetings with investors and securitizers to further explore how to increase private lending.
Related:
No Current Plans to Extend HARP (July 11, 2014)
The recent extension of the Making Home Affordable initiative does not necessarily mean that the Home Affordable Refinance Program will also be extended.
