NAHB applauds FHA's on-time rollout of new foreclosure prevention programMortgagePress.comNAHB, homebuilders, foreclosure, FHA, Housing and Economic Recovery Act of 2008 The National Association of Home Builders (NAHB) has expressed appreciation for the efforts of the Federal Housing Administration (FHA) in meeting the October 1 deadline for opening the Hope for Homeowners program, where FHA will insure new, more affordable mortgages for homeowners struggling with burdensome payments on their current home loan. "It was critical to get this program up and running quickly in order to help stem mounting mortgage foreclosures that add to unsold home inventories and undermine home prices," said Sandy Dunn, NAHB chairman and a builder from Point Pleasant, W. Va. Under the program, the holder of a troubled mortgage must agree to accept, as payment-in-full, an amount equal to 87 percent of the current value of the mortgaged property. The borrower receives a new, FHA-insured mortgage that represents 90 percent of the home's current value, with the three percent balance going to cover the borrowers upfront FHA mortgage insurance premium. The homeowner is responsible for an annual mortgage insurance premium of 1.5 percent. Borrowers must meet a mortgage payment-to-income test and agree to share equity gains on the home with the federal government. FHA was granted an additional $300 billion in mortgage insurance authority by the Housing and Economic Recovery Act of 2008 to operate the new program, which was authorized for three years. "Our members are hoping mortgage investors and servicers take full advantage of the Hope for Homeowners program," said NAHB's President Jerry Howard. "Replacing toxic mortgages with sound and affordable FHA-backed loans would go a long way in restoring order to what has been a very chaotic mortgage market." For more information, visit www.nahb.com.