(a) Establishment There is established in the Federal Housing Administration a HOPE for Homeowners Program. (b) Purpose The purpose of the HOPE for Homeowners Program is- (1) to create an FHA program, participation in which is voluntary on the part of homeowners and existing loan holders to insure refinanced loans for distressed borrowers to support long-term, sustainable homeownership; (2) to allow homeowners to avoid foreclosure by reducing the principle 1 balance outstanding, and interest rate