Making Home Affordable Program

Updated 2026-05-17

The Making Home Affordable Program (MHA) was a federal government initiative launched in 2009 in response to the housing crisis. Its primary goal was to help homeowners avoid Foreclosure by providing various mortgage relief options, including loan modifications and refinance opportunities.

Loss Mitigation

The MHA program offered several forms of loss mitigation, which refers to the process by which mortgage servicers work with borrowers experiencing financial hardship to explore alternatives to foreclosure. The goal of loss mitigation is to minimize losses for both the borrower and the lender/investor.

Loss mitigation is a key administrative task performed by mortgage servicers as part of their broader Mortgage Servicing duties. During HUD-1 Settlement Statement, Special Information Booklet, Closing Disclosure, and Form HUD-11702, it is crucial that the new servicer seamlessly continues any ongoing loss mitigation efforts and accurately processes new requests to protect consumers.

Common Loss Mitigation Options (including those offered by MHA)

• Loan Modifications: Changing the terms of the mortgage loan (e.g., interest rate, term, principal balance) to make payments more affordable.
• Forbearance: A temporary reduction or suspension of mortgage payments.
• Repayment Plans: An agreement to pay an additional amount each month to catch up on past-due payments.
• Short Sale: Selling the property for less than the outstanding mortgage balance, with the lender's agreement to accept the proceeds as full or partial satisfaction of the debt.
• Deed-in-Lieu of Foreclosure: Voluntarily transferring ownership of the property to the lender to avoid the foreclosure process.

Exploitation by Scammers

While MHA was a legitimate program designed to assist distressed homeowners, it was often exploited by fraudsters. Scammers adapted their schemes to take advantage of homeowners eligible for MHA, mimicking government logos and names to appear legitimate. They would promise guaranteed enrollment in MHA or similar relief programs for upfront fees, ultimately defrauding homeowners who were desperately seeking help.

The existence of programs like MHA underscores the importance for MLOs and consumers to distinguish between legitimate government assistance and fraudulent schemes.

References

2. Foreclosure Rescue Scams & Loan Modification Fraud | FinCEN.gov — fincen.gov
3. [PDF] FORECLOSURE RESCUE, INC. - Lawyers' Committee for Civil Rights — lawyerscommittee.org
4. Bulletin 2020-02 - Compliance Bulletin and Policy Guidance — files.consumerfinance.gov