Federal law encourages private lenders to modify mortgages so as to lower the monthly payments of borrowers who are in default.

Question

Quizplus · Accepted Answer

The federal government has various programs and incentives to encourage private lenders to modify mortgages and prevent foreclosures. Examples include the Home Affordable Modification Program (HAMP) and the Making Home Affordable program. These programs aim to help struggling homeowners avoid foreclosure by reducing their monthly mortgage payments through loan modification or refinancing.

Federal Law Encourages Private Lenders to Modify Mortgages So as to Lower