New adjustments made to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs will expand flexibility for mortgage servicers and originators to assist more unemployed homeowners and to help more people who owe more on their mortgage than their home is worth because their local markets saw large declines in home values.

The new FHA refinance options will provide more opportunities for lenders to restructure loans for some families who owe more than their home is worth. This is a voluntary program for lenders and homeowners. For borrowers to be eligible for an FHA refinancing, they must be current on their mortgage. This rewards responsible homeowners and creates stabilizing incentives in the housing market.

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