Homeowners Affordability and Stability Plan
The Homeowners Affordability and Stability Plan is a U.S. program announced on February 18, 2009, by U.S. President Barack Obama. According to the US Treasury Department, it is a $75 billion program to help up to nine million homeowners avoid foreclosure, which was supplemented by $200 billion in additional funding for Fannie Mae and Freddie Mac to purchase and more easily refinance mortgages.[1] It was initiated in 2009 to stabilize U.S. economy during 2008 Great Recession.[2] The plan is funded mostly by the Housing and Economic Recovery Act. It uses cost sharing and incentives to encourage lenders to reduce homeowner's monthly payments to 31 percent of their gross monthly income.[3] Under the program, a lender would be responsible for reducing total monthly mortgage payments (PITI) to no more than 38 percent of the borrower's income, with the government sharing the cost to further reduce the payment to 31 percent. The plan also involves potentially forgiving or deferring a portion of the borrower's mortgage balance. Mortgage servicers will receive incentives to modify loans and to help the homeowner stay current, though participation by lenders is voluntary.[4][5][6]
See also
External links
- Making Home Affordable
References
- ^ "Homeowner Affordability and Stability Plan Fact Sheet". U.S. Department of the Treasury. 2023-12-14. Retrieved 2023-12-20.
- ^ "Homeowner Affordability and Stability Plan (HASP)". Investopedia. Retrieved 2023-12-20.
- ^ "NEW: Homeowner Affordability and Stability Plan | dhcd". dhcd.dc.gov. Retrieved 2023-12-20.
- ^ "President Obama's Plan". Bloomberg.com. 2009-02-20. Archived from the original on 2012-10-24. Retrieved 2009-02-27.
- ^ Fact Sheet-Homeowners Affordability and Stability Plan Archived 2009-02-20 at the Wayback Machine
- ^ NYT-U.S. Sets Big Incentives to Ward Off Foreclosures
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- Economic Stimulus Act of 2008
- Housing and Economic Recovery Act of 2008
- Emergency Economic Stabilization Act of 2008
- Dodd–Frank Wall Street Reform and Consumer Protection Act
- Acquired or bankrupt banks in the late 2000s financial crisis
- Capital Assistance Program
- Capital Purchase Program
- Federal Reserve responses
- Federal takeover of Fannie Mae and Freddie Mac
- Government intervention
- Homeowners Affordability and Stability Plan
- Hope Now Alliance
- Loan modification
- Public–Private Investment Program for Legacy Assets
- Regulatory responses
- Primary Dealer Credit Facility
- 2009 Supervisory Capital Assessment Program
- Tea Party protests
- Term Asset-Backed Securities Loan Facility
- Troubled Asset Relief Program
- Wall Street reform
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