HAMP program was launched in 2009.In 2009 and 2010 interest rates were high and the loans that were modified during that period were set to the final rate of 5%.
At present PMMS rate is around 3.8%.Reducing the interest rates for the earlier modified loans is very helpful to the people whose loans were modified at higher rate.At the same time investors are also not losing any money,since the current rates are low.
For the HAMP tier 2 program rate has been reduced to 3.3%
For the loans that were modified under HAMP tier 1 program.Setting rate to 3.3% is fair and will help the troubled home owners to continue to make the payments and retain their homes.
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