Friday, October 9, 2009

Loan Modification Program hits target before schedule:

The Obama administration had launched a program called Making Home Affordable (MHA) few months back, around March 2009, which had shown a bit bumpy start at the beginning. The program was designed so as to reduce foreclosures and help 3 million to 4 million borrowers prevent foreclosure within three years.

According to the reports, it shows that the loan modification plan reached its initial goal of 500,000 trials more than three weeks ahead of schedule. Despite the disappointing launch, the mortgage relief effort by the government has touched its interim target of 500,000 trial loan modifications that was scheduled for November 1. Even thought this is just the beginning, at least we can see a glimpse of hope to ease the foreclosure crisis.

The main objective of the MHA program was to help the struggling homeowners modify their mortgages to prevent foreclosure, and as a consequence revive the housing market. The government tried to do so by reducing the interest rates and prompted the homeowners or the borrowers to refinance their loans. The result shows that the industry is working hard to reach the goal. The 500,000 mark has been praised by the chairman of the Mortgage Bankers Association as “great news for consumers, homeownership and the economy in general". He has also said that MBA is willing to work with the government and provide help particularly to those borrowers who were unable to qualify for the modification program.

Let us hope that the MHA program fulfills their target, reduce the number of foreclosure cases and stabilize the housing market in near future.

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