The Obama administration is expanding eligibility for its Home Affordable Modification Program,...

|By:, SA News Editor

The Obama administration is expanding eligibility for its Home Affordable Modification Program, known as HAMP, to borrowers with higher debt loads and tripling the incentives it pays banks that reduce principal on loans. Some of the changes include expansion of eligibility to borrowers with less than 31% equity, rental property owners and Fannie and Freddie if they allow servicers to forgive principal on HAMP modifications.