Policy Issues • Financial Markets
Making Home Affordable
“Making Home Affordable” is commonly used as a label for housing-related initiatives that aim to stabilize homeownership and support borrowers during periods of stress. Discussions typically cover program design, eligibility, servicer participation, and reporting of outcomes.
Common Goals
- Reduce payment strain: lower monthly costs through modifications or other mechanisms.
- Avoid preventable foreclosures: provide options to keep borrowers in homes when possible.
- Stabilize communities: reduce spillover effects of high foreclosure rates.
How Housing Programs Are Typically Described
Program Elements
- Eligibility: borrower, property, and loan requirements.
- Servicer processes: documentation, timelines, and decision rules.
- Incentives: how participation is encouraged and supported.
- Reporting: participation, performance, and sustainability metrics.
Interpreting Results
- Participation: number of trials, permanent modifications, or other actions taken.
- Performance: redefault rates and payment outcomes.
- Distribution: where assistance is concentrated by geography or borrower segment.