The Home Affordable Modification Program (HAMP) was introduced by the Obama administration in 2009 with the goal of helping distressed homeowners keep their homes. That help was and is badly needed. The ongoing mortgage crisis and recession has left millions of Americans owing more on their home than it is worth and without enough income to afford their monthly payment. Something needed to be done, and Uncle Sam stepped up with HAMP.
The Home Affordable Modification Program is designed to reduce a homeowner's monthly payment to 31 percent of the homeowner's monthly gross income. In many cases, this could mean a reduction in principal or a lowered interest rate.