What is the HOPE for Homeowners program?

The HOPE for Homeowners Program was a mortgage refinancing program that the Bush Administration signed into law on July 30, 2008 at the height of the housing crisis. It provided struggling homeowners with opportunities to refinance their mortgages at up to 93 percent of their homes' new market values.

By lowering mortgage payments and preventing loan payment defaults, the HOPE for Homeowners Program was designed to protect qualified homeowners from foreclosure. The new mortgages were to be financed by any of the big four banks: Bank of America, Wells Fargo, Citigroup and Countrywide, while the Federal Housing Authority insured the new loans. However, the program failed when none of the big banks participated. The government scrapped the program on Sept. 30, 2011.