FHFA Extending Foreclosure Prevention Programs

WASHINGTON, D.C. (Reuters) – The Federal Housing Finance Agency (FHFA) announced Friday that it is extending the Home Affordable Mortgage Program (HAMP) and the Home Affordable Refinance Program (HARP) through the end of 2016.

HARP allows borrowers with loans backed by Fannie Mae and Freddie Mac to refinance at lower interest rates even when the homes have lost value. HAMP provides incentives for lenders to alter mortgage terms to make them more affordable.

FHFA Director Mel Watt said the programs were never meant to be permanent and that it would be the last extension for HAMP and likely the last one for HARP as well.