In the wake of the mortgage crisis, the government has implemented a number of programs to assist homeowners who are struggling with mortgage payments and are at risk of foreclosure, while minimizing losses for investors. The Home Affordable Modification Program (HAMP), for instance, incentivizes mortgage servicers to modify mortgage loans to help home owners. Reports indicate that only 22% of those who applied for HAMP were referred to foreclosure. However, since many homeowners do not qualify for HAMP, they are forced to look for alternative solutions to avoid delinquency.
In addition to the government, there are several things service providers can do on their part by leveraging Making Home Affordable (MHA) programs to help homeowners navigate the aftermath of the crisis successfully. This paper highlights the impact of government implementations and some of the measures that mortgage servicers can take to address the issues facing the industry in a dynamic market and improve business outcomes.