What does the acronym HAMP stand for in mortgage assistance?

The acronym HAMP stands for the Home Affordable Modification Program. This program was established to help homeowners who were struggling to make their mortgage payments as a result of job loss, reduced income, or other financial hardships, particularly during the financial crisis of the late 2000s. HAMP aims to provide relief by modifying loans to make them more affordable, reducing monthly payments to sustainable levels, and ultimately helping avoid foreclosure.

The program specifically targets those who may be at risk of losing their homes and offers structured assistance to modify existing mortgage agreements based on the borrower's current financial situation. This initiative is a key part of HUD's broader efforts to stabilize the housing market and support at-risk homeowners.

The alternative choices, while they sound plausible, do not refer to the official program aimed at modifying mortgages for distressed homeowners. Therefore, "Home Affordable Modification Program" is the precise name of the federal program designed to provide this type of mortgage assistance.