FHA Revises Loss Mitigation Program
“Not only are we taking steps to make sure more borrowers can benefit from FHA loss mitigation assistance, but we are also targeting our assistance to provide more sustainable payments for borrowers so that they are successful in retaining their homes over the long term,” said Acting FHA Commissioner Carol Galante.
By helping more borrowers, the agency hopes to reduce the number of claims against FHA’s Mutual Mortgage Insurance (MMI) Fund.
“At the same time, these efforts will reduce losses to FHA from foreclosures, benefiting our insurance fund,” Galante added.
Recently, a review from an independent agency found the capital reserve ratio of the MMI Fund has fallen to a negative 1.44 percent, representing a negative value of $16.3 billion.
Some of the changes the agency announced include expanding the FHA-HAMP program and eliminating some requirements that limit a lender’s ability to provide assistance.
The full list of changes can be found in the agency’s mortgagee letter.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
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