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Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
Updated August 24, 2024 Reviewed by Reviewed by Charlene RhinehartCharlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.
Making Home Affordable (MHA) was a program launched in 2009 as part of the Troubled Asset Relief Program (TARP), the federal government's response to the subprime mortgage crisis. MHA aimed to help eligible homeowners by lowering their monthly mortgage payments to a more manageable level.
Making Home Affordable was designed to stabilize the housing market and prevent foreclosures. The reduction in payments was accomplished either through refinancing or modification of the existing mortgage. The administration of President Barack Obama initially allocated $75 billion to the program. The Making Home Affordable (MHA) program expired in 2016.
The U.S. Department of the Treasury launched the MHA program in early 2009 as a way to "help struggling homeowners avoid foreclosure," according to the agency.
"Since its inception, MHA has helped homeowners avoid foreclosure by providing a variety of solutions to modify or refinance their mortgages, get temporary forbearance if they are unemployed, or transition out of homeownership via a short sale or deed-in-lieu of foreclosure," Treasury officials explain.
A centerpiece of MHA was its Home Affordable Modification Program (HAMP), which allowed eligible homeowners to lower their monthly mortgage payments. Families were able to lower their monthly payments by a median of $530 per month. To qualify, homeowners needed to document they were in financial hardship and that they would be able to afford the payments following the payment modification.
The Treasury Department also launched other programs under MHA to "help homeowners who are unemployed, 'underwater' on their loan (those who owe more on their home than it is currently worth) or struggling with a second lien."
Such additional programs included the Principal Reduction Alternative (PRA), which was aimed at homeowners with a loan-to-value ratio of more than 115%; the Home Affordable Unemployment Program (UP), which could give "temporary forbearance" for homeowners who were unemployed; the Second Lien Modification Program (2MP), which created a "mechanism for servicers to modify second liens when a homeowner receives a first lien modification through HAMP," and the Home Affordable Foreclosure Alternatives Program (HAFA), which aimed to help homeowners "exit their homes and transition to a more affordable living situation through a short sale or deed-in-lieu of foreclosure."
In 2014, the Obama Administration extended the deadline for MHA applications until the end of 2016. The Treasury Department notes that, while MHA has expired, "homeowners are encouraged to contact their mortgage company directly to inquire about available solutions."
For borrowers who can no longer afford their monthly mortgage payment, mortgage forbearance is available as a temporary solution. Your mortgage lender would pause or reduce your monthly payments for a period of time and establish a plan for you to pay that difference later when you have recovered financially.
The Treasury Department noted that more than 1.8 million families were helped directly through HAMP and that the MHA program "set new standards that have transformed the mortgage industry, resulting in more than 3.9 million private-sector mortgage modifications through October 2013. Together, public and private efforts have helped more than 7 million Americans get mortgage assistance to prevent avoidable foreclosures."
The MHA program offered advice on finding a housing counselor, applying for mortgage assistance, dealing with mortgage companies, and avoiding scams. It made counselors available by phone to "help you understand your options, design a plan to suit your individual situation and prepare your application."
Resources were made available to homeowners in a HAMP modification to help them understand their modifications, get incentives for timely payments, and manage their payments.
If you are facing financial hardship, please call your mortgage servicer, which is the company that receives your monthly payments. Also, the Department of Housing and Urban Development (HUD) offers access to HUD-approved counseling agencies. Please contact (888) 995-HOPE (4673) to reach a counselor.
As a result of the financial crisis of 2007-2008, the Making Home Affordable (MHA) program was launched in 2009 to help homeowners avoid foreclosure. The MHA lowered monthly mortgage payments through a loan modification or refinancing.
The Home Affordable Modification Program (HAMP) was a key component of the Making Home Affordable (MHA) Program. HAMP helped homeowners lower their monthly mortgage payments. To qualify, documented financial hardship and proof that borrowers could afford the payments following the payment modification were needed.
For those experiencing financial hardship, contact your mortgage servicer (the company that receives your monthly payments) right away. Also, counseling is available through the Department of Housing and Urban Development (HUD) approved counseling agencies. Please contact (888) 995-HOPE (4673) to reach a counselor.
Following the financial crisis of 2007-2008, the Making Home Affordable (MHA) program was launched in 2009 to help homeowners facing financial hardship avoid foreclosure. The MHA helped homeowners by lowering their monthly mortgage payments through refinancing or modifying an existing mortgage. The MHA also helped to stabilize the housing market and prevent foreclosures. However, the Making Home Affordable (MHA) program expired in 2016.
