9.  Homeowner Assistance Programs 56 •  The U.S. Department of the Treasury also has developed uniform guidance for loan modifications to be used by  participating servicers in the private sector . The GSEs have incorporated material aspects of these guidelines for  loans that they own and loans backing securities that they guaranty . •  HAFA, which became effective in April 2010, is intended to provide additional alternatives to foreclosures by  providing incentives to encourage a borrower and servicer to agree that: (i) a borrower can sell his or her home for  less than the full amount due on the mortgage and fully satisfy the mortgage; or (ii) a borrower can voluntarily  transfer ownership of his or her home to the servicer in full satisfaction of the mortgage.  •  In February 2009, the U.S. Department of the  Treasury established HAMP as a program to modify certain loans to  make them more affordable to borrowers, with the goal of reducing the number of foreclosures. Under HAMP , an  eligible borrower’s monthly payments may be lowered by lowering interest rates, extending the term of the  mortgage or deferring principal. To be eligible, a borrower must meet certain conditions, including conditions  relating to the borrower’s current income and non-mortgage debt obligations. In January 2012, the U.S.  Department of the Treasury proposed enhancements to HAMP . These proposed enhancements are designed to  expand the program for homeowners by , among other things, increasing incentive payments for principal  reduction and modifying certain conditions relating to the borrower ’s current income and non-mortgage debt  obligations. In June 2012, the HAMP program extended the population of eligible homeowners to (i) homeowners  applying for a modification on a home that is not their primary residence, but the property is currently rented or  the homeowner intends to rent it; (ii) homeowners who were previously ineligible because their debt-to-income  ratio was 31% or lower; (iii) homeowners who previously received a HAMP  trial period plan, but defaulted in  their trial payments; and (iv) homeowners who previously received a HAMP  permanent modification, but  defaulted in their payments, therefore losing good standing. Program enrollment in the HAMP  program ends  December 31, 2013. •  In 2009, the GSEs began offering the HARP program that allows a borrower who is not delinquent to refinance  his or her mortgage to a more stable or af fordable loan if such borrower has been unable to take advantage of  lower interest rates because his or her home has decreased in value.  To be eligible, a borrower must meet certain  conditions, including that the borrower must be current on the mortgage at the time of the refinance, with no late  payment in the past six months and no more than one late payment in the past 12 months. In November 201 1,  FHFA made enhancements to the HARP program (“HARP 2”) to increase the number of borrowers who can  qualify for refinancing. Under HARP  2, among other changes, the FHFA: (i) removed the 125 percent LTV ceiling  for fixed-rate mortgages backed by the GSEs, which had prevented some borrowers whose home values had  declined significantly from participating; (ii) eliminated certain risk-based fees for borrowers who refinance into  shorter-term mortgages; (iii) waived certain representations and warranties; and (iv) extended the program through  2013. Importantly, the FHFA reached an agreement with private mortgage insurers to facilitate the transfer of  mortgage insurance on loans to be refinanced without regard to L TV. While legislation is not required to make  changes to HARP because FHFA has the authority to make changes to the program on its own, legislation was  introduced in May 2012 that would require FHF A to further expand the HARP  eligibility requirements to help  even more homeowners with GSE-backed loans to refinance into lower rates.  The CFPB also has proposed that if  the HARP program is extended beyond 2013, those loans may receive an exemption from the  Ability-to-Repay  requirements under the CFPB’s January 2013 rule, described above. EESA included provisions that require the U.S. Secretary of the  Treasury (“Treasury Secretary”) to encourage further use  of the Hope for Homeowners program. Under EESA, the  Treasury Secretary is required to “maximize assistance to  homeowners and encourage mortgage servicers to take advantage of available programs (including the Hope for Homeowners  program) to minimize foreclosures.” In 2008, the U.S. Department of the  Treasury announced the Homeowner Affordability  and Stability Plan to restructure or refinance mortgages to avoid foreclosures through: (i) refinancing mortgage loans through  HARP; (ii) modifying first and second mortgage loans through the Homeowner  Affordable Modification Program (“HAMP”)  and the Second Lien Modification Program; and (iii) of fering other alternatives to foreclosure through the Home  Affordable  Foreclosure Alternatives Program (“HAFA”). Details of these programs are as follows:  See “Risk Factors— Loan modification, refinancing and other similar programs may not provide us with a material  benefit.” 