home affordable modification program (HAMP)

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A program introduced in 2009 to help stabilize the U.S. housing market. The HAMP program offers loan modifications to distressed homeowners in cases where more that 31% of their gross income had to be used for mortgage payments. Homeowners could get adjustments to their loan principle, interest rate or payment schedule to bring that percentage below the 31% threshold. Under the same scheme, the banks also receive financial incentives from the U.S. government to offer these modifications to qualified homeowners.

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