David G. Kittle, CMB, chairman of the Mortgage Bankers Association (MBA) has issued the following reaction to the release of guidelines and details for the Federal Housing Administration's (FHA) loan modification program under the Obama administration's Home Affordable Modification Program (HAMP).
"We are excited to have another tool that lenders can use to help borrowers who have the ability and desire to stay in their homes, do so. Allowing lenders to set aside up to 30 percent of the loan principal in an interest-free second mortgage will make it possible for lenders to reduce the monthly mortgage payment for thousands of troubled borrowers with FHA loans.
"Combined with the other programs that the administration has created, lenders now have more options than ever before to help delinquent borrowers. Data is showing that lenders are consistently helping more and more borrowers, and we expect that will continue with the addition of this new option."
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