Bolstering Home Finance: Reconciling Policy Initiatives and Investor Protections

Abstract

The current policy initiatives to support housing finance, the Home Affordable Modification Program (HAMP), the Homeowner Affordability and Stability Plan (HASP), and Help for Homeownerss (H4H), are expected to counter the lingering impact of the credit crisis on homeowners, but they are also expected to have unintended consequences. As those programs favor homeowners, private investment, a traditionally significant source for housing finance, may be curtailed. This article provides an overview of the policy initiatives, the strategies, and outcomes of the mortgage loan modification programs, and the impact on investors.