iEmergent announces release of 2009 FHA Market Forecast

HUD issues Mortgagee Letter regarding Project Lifeline, FHA foreclosure timeframesMortgagePress.comHUD, Mortgagee Letter 2009-05, Project Lifeline, HOPE NOW Alliance, FHA The U.S. Department of Housing and Urban Development has issued Mortgagee Letter 2009-05 to clarify how a mortgage servicer may participate in Project Lifeline without running afoul of HUD's rules regarding the timeframe for foreclosure. Under Project Lifeline, servicers that are members of the HOPE NOW Alliance send monthly letters to certain seriously delinquent borrowers offering to pause foreclosure proceedings for 30 days. In order to meet Federal Housing Authority (FHA) foreclosure timelines, HUD will allow a 30-day extension for foreclosure proceedings paused under Project Lifeline, provided that the servicer satisfies a number of conditions related to the targeted, direct mail campaign and to the borrower's ultimate inability to stave off the foreclosure. This extension also applies to non-HOPE NOW Alliance members that satisfy all applicable requirements. The extension is applicable to loans that were 90 or more days delinquent as of February 12, 2008, for which the FHA receives an eligible claim on or before Dec. 31, 2009. For a copy of the letter, click here.