REFINING REFI’S
HUD Secretary Shaun Donovan has announced that, by August 15th, FHA insured borrowers will be able to seek a Making Homes Affordable loan modification and “significantly reduce their monthly mortgage payments.” In guidelines released on July 30th under authority of the Helping Families Save Their Homes Act of 2009, lenders and servicers are expected to use partial claims to defer the payment of some amount of outstanding mortgage principal through an interest-fee, subordinate mortgage that does not come due until the first mortgage is paid off. FHA also will pay an incentive to loan servicers for every FHA loan modified under the program. Bringing this “important tool to the table,” says the Secretary, will enable FHA borrowers “to modify their mortgages in the same manner as so many others who are taking advantage” of the program.
For more, read FHA Mortgagee Letter 09-ML-23:
Wednesday, August 5, 2009
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