Bush adminsitration's FHASecure refinaces 200,000th mortgage for American familiesMortgagePress.comFHASecure, George W. Bush, Roy A. Bernardi, HUD, homeownership
U.S. Housing and Urban Development Deputy Secretary Roy A.
Bernardi has announced the Bush Administration'' FHASecure product
has helped 200,000 homeowners refinance their mortgages and avoid
foreclosure. Since September 2007, FHASecure has enabled struggling
families - who are current or past due on their mortgages--to
refinance through HUD's Federal Housing Administration (FHA).
"Over the past several months, FHA has been working to help
families who want permanent relief from their high cost subprime
mortgages," said Bernardi. "We are proud to have helped these
struggling homeowners keep their homes."
"The Bush Administration's FHASecure product has quickly proven
to be a responsible solution for 200,000 American families who are
in the right house, but the wrong mortgage," said FHA Commissioner
Brian D. Montgomery. "These homeowners have found affordable relief
from their exotic loans, and FHA is on pace to help a total of half
million families keep their homes by year's end."
In the past three months, FHASecure has insured twice as many
loans as the program did in the program's first six months. From
September 2007 to February 2008, FHA insured 100,000 refinanced
mortgages. As more homeowners continued to learn about the benefits
of FHA's traditional 30-year fixed, prime-rate financing, FHA
backed another 100,000 loans in half the time.
Timeline: Bush Administration responsibly helping
families stay in their homes
• In 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.
• In 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.
• In March 2008, as part of the bipartisan 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.
• In March 2008, the Bush Administration proposed reforms
to the Real Estate Settlement Procedures Act (RESPA) to help
American homeowners better understand their mortgages and to allow
them to shop for the best loan offer. Under this proposal, home
buyers would be presented for the first-time ever with a standard
form disclosing the important aspects of a loan. This new
disclosure would ensure that home buyers are provided, early in the
home buying process, complete, accurate and understandable
information about their mortgages.
• In April 2008, the Bush Administration announced an
expansion of FHASecure, which will start in July, 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.
• Starting in July 2008, FHA will expand FHASecure using a
fair, flexible premium structure. This change, the first in FHA's
74-year history, will better protect FHA's solvency and ensure
taxpayers do not assume the cost of this expansion by charging
borrowers mortgage insurance premiums based on their credit
risk.
For more information, visit www.hud.gov.
