May 11, 2009
Authored by: Bryan Cave
On April 28, 2009, Treasury announced updates to the Making Home Affordable Program. As previously discussed, the Treasury’s Making Home Affordable Program, which is aimed at helping 7 to 9 million homeowners, consists of two programs: The Home Affordable Refinance Program and the Home Affordable Modification Program. The newly announced updates address modifications to second mortgages where the first mortgage has been modified under the Home Affordable Modification Program.
The Making Home Affordable Program is a completely voluntary program. However, mortgage holders and servicers that do sign up for the Program, should realize that they must modify any second mortgage for a homeowner whose first mortgage has been modified under the Program. A mortgage holder cannot elect not to modify a second mortgage once it has entered the Program. A list of participating institutions is available here.