Alert August 11, 2009

Treasury Announces New Program Providing Incentives to Modify Loans in Areas Where Home Price Declines Have Been Steepest

The Treasury Department issued a supplemental directive to provide additional incentive payments for Making Home Affordable Program participants that modify loans on properties in areas where home price declines have been steepest. The incentive payments will be calculated based on a formula that takes into account the rate of recent home price decline in a particular market, as well as the unpaid principal balance and market-to-market loan-to-value ratio of the mortgage loan. Click here for the directive.