HUD secretary: FHA has helped 300,000 families find relief with government-backed mortgagesMortgagePress.comHUD, FHA, FHASecure, Steve Preston,
U.S. Department of Housing and Urban Development Secretary Steve
Preston announced that 300,000 families have refinanced their
mortgages with HUD's affordable mortgage insurance program. Since
September 2007, FHASecure-the Federal Housing Administration (FHA)
refinancing product-has provided struggling families with expanded
access to safe and affordable mortgage financing. FHA is on pace to
help 500,000 families by the end of the year.
"FHA remains a source of hope for families who want to stay in
their homes," said Preston. "The Bush Administration's smart,
practical solutions to expand FHA-insured financing are offering a
safety net for hundreds of thousands of families in need of
affordable home loans. We are focused and determined to work
through the current challenges in the mortgage market."
Timeline: Bush administration's responsible plan to help
families stay in their homes
August 2007
President Bush launched a new initiative at HUD's Federal Housing
Administration (FHA) called FHASecure to help hundreds of thousands
of struggling homeowners - especially low-income families and
minorities - avoid foreclosure. This product expanded FHA's ability
to offer refinancing to homeowners who have good credit histories,
but cannot afford their mortgage payments after their teaser rates
reset.
February 2008
President Bush requested $65 million for housing counseling in his
Fiscal Year 2009 budget request. The Administration has increased
funding for HUD's 2,300 approved housing counseling agencies by 150
percent since 2001. Fifty million dollars was approved for
counselors in Fiscal Year 2008. Another $180 million went to the
non-profit NeighborWorks this year to help them prevent
foreclosures.
March 2008
As part of the bi-partisan economic growth package, FHA temporarily
increased its loan limits until the end of this year, enabling
hundreds of thousands of more families to purchase or refinance
their homes at an affordable price. The new temporary limits will
range from $271,050 to $729,750.
July 2008
FHA expanded FHASecure to help homeowners with adjustable rate
subprime mortgages who can no longer afford their mortgages and
missed up to three monthly mortgage payments over the past 12
months. Rather than go into foreclosure, eligible borrowers can
refinance with FHA and lenders can voluntarily write down the
outstanding subprime mortgage principal balances.
July 2008
President Bush signed into law a plan for the FHA to continue
providing targeted mortgage assistance to homeowners. The Hope for
Homeowners program will allow certain borrowers facing difficulty
with their mortgage to be eligible to refinance into FHA-insured
mortgages they can afford. The program will be implemented on Oct.
1, 2008.
For more information, visit www.hud.gov.
