There are three main elements of the HASP:
- GSE Refinancing for Responsible Homeowners Suffering from Falling Home Prices.
- $75 Billion Homeowner Stability Initiative to Reach up to 3 to 4 Million At-Risk Homeowners
- Supporting Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac
Some of the highlights of the HASP are:
- Ability to refinance up to 105% of the loan-to-value (LTV)
- Government subsidized loan modification up to 150% LTV
- Uniform guidance for loan modifications
- Bankruptcy judges can modify loans
The HASP will help many people, but not all. Also, lenders will be provided with incentives to help, but they do not have to participate. Click here to read more.
The guidelines of the plan are expected to be finalized by March 4th. At that time, all the requirements should be defined. Below you will find additional information provided by the U.S. Department of the Treasury.