Which of the following is a provision included in the Dodd-Frank Act to aid struggling homeowners?

The Dodd-Frank Act was implemented in response to the financial crisis of 2008, aiming to create a more stable financial system and protect consumers. One of its key elements included the establishment of provisions to assist struggling homeowners.

Creating the Home Affordable Modification Program (HAMP) is one such provision designed to prevent foreclosures by allowing eligible homeowners to modify their mortgage loans. This program provided financial incentives to lenders to encourage them to adjust the terms of loans for borrowers who were having trouble making payments, thereby reducing the monthly payments to an affordable level. HAMP aimed to help homeowners by offering a structured process for modifying loans, as well as ensuring that lenders were motivated to participate in the program.

In contrast, the other options do not accurately reflect provisions included in the Dodd-Frank Act. Requiring all lenders to offer loan modifications irrespective of homeowner circumstances suggests a blanket obligation that does not align with the nuances of responsible lending and the assessment of individual borrower situations. Implementing a cap on interest rates, while beneficial in some contexts, was not a specific provision of the Dodd-Frank Act. Finally, requiring loan modifications only for homeowners with government-sponsored loans limits the scope of assistance, whereas the provisions of the Dodd-Frank Act were intended