FHA Mortgage Success with Making Home Affordable

The past week we saw the State of California pass a law that banned advance fees for loan modification companies with the announcement that more than 500,000 FHA loan modifications in progress under the Making Home Affordable program. These are better results for FHA that saw very few homeowners receive mortgage relief with the Hope for Homeowners and FHA Secure refinance products. What we had before 949 applications under the Hope for Homeowners Program and only 1 mortgage approval. The FHA Secure program allowed only 3,794 delinquent borrowers who had conforming mortgages to refinance with FHA mortgage lending in 2008.

In contrast, the Obama Administration reports that 2,484,783 borrowers have sought information under the Home Affordable Modification Program (HAMP) through the end of September. Of this number, 757,955 were offered three-month trial modification and 487,081 loan modification agreements have begun. If the borrower makes three lower payments during the trial period then the loan is permanently changed to that lower rate and hopefully the home is saved from foreclosure.

 

FHA Hope for Homeowners Amendment

This FHA loan enables homeowners can recapture 10% equity in their house immediately and benefit from mortgage relief with lower your mortgage payments with a FHA H4H Act Loan.  The amendment would keep in place current taxpayer protections in the HOPE for Homeowners program that would be stripped if the bill passed without the amendment. 

Rep. Bachmann introduces a taxpayer friendly amendment to H.R. 384, the TARP Reform and Accountability Act.  FHA mortgage lending continues to blaze a trail for home financing with thoughtful foreclosure prevention measures.