The FHA Home Mortgage Loan Company provides HUD and refinance news for FHA mortgage lending.
Patrick Rucker reports that this new loan initiative, which helps high-risk or low-income borrowers’ secure better loan terms by insuring mortgage payments, targets recent homeowners whose loans have a pre-set interest-rate hikes that led to the borrower getting behind on their mortgage payment. According to the Federal Reserve Board, with the mortgage costs rising $350 a month, nearly two million borrowers could face interest rate hikes on their home mortgage by 2008 and 2009.
- FHA Fixed Rate Mortgages
- Secure FHA Home Refinancing
- Mortgage Late Payments OK after ARM
- Credit Scores are Not Factored
- 15 or 30-Year Fixed Rate Loans
Fixed Rate Government Refinancing for
to Assist in Foreclosure Prevention
According to a recent article posted on Reuters, a program unveiled by U.S. President George W. Bush in August that is trying to save tens of thousands of homeowners from foreclosure has aided just 266 borrowers so far, according to government data released on Monday.
Officials behind the new initiative, called FHA Secure, said it is on track to move 60,000 delinquent borrowers into stable, fixed-rate home loans.
But between September and mid-December, only 266 such borrowers have cleared all FHA hurdles, according to data compiled by the Department of Housing and Urban Development that was provided to Reuters. FHA Director Brian Montgomery said the new lending program was off to a slow start but is overcoming government challenges and increasing in popularity as the national foreclosure epidemic worsens.
"Remember, we are flying the plane as we are fixing it," he said. The number of lenders willing to process the new loans has more than tripled to over a thousand in the last month, Montgomery said of FHA Secure."We stand by our estimates, at the end of the day. These numbers (of borrowers) are increasing every week. Not quite doubling but close to it."Officials at the U.S. Department of Housing and Urban Development note many of the 3,200 delinquent borrowers who have applied for a new loan since September but have not won final approval may yet be accepted.