|FHA and FHFA Announce Changes to Loss Mitigation Programs|
|The Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHFA) announced yesterday changes to their loss mitigation requirements to streamline their processes and help struggling homeowners avoid foreclosure and stay in their homes.
FHA announced procedural changes designed to streamline mortgage servicers’ ability to evaluate a struggling homeowner’s eligibility for FHA’s Home Affordable Modification Program (HAMP). Specifically, FHA announced changes that will:
FHFA announced it is directing Fannie Mae and Freddie Mac to implement a new loan refinance option for borrowers with high loan-to-value (LTV) ratios. The new product is designed to allow mortgage refinancing by eligible borrowers who would otherwise be unable to do so through traditional programs because their LTV exceeds Fannie Mae’s and Freddie Mac’s current maximum limits. To be considered eligible for the new refinance product, borrowers:
The new product will not be available until October 2017. In the meantime, FHFA will extend the Home Affordable Refinance Program (HARP) through September 2017 as a "bridge" to ensure a refinance option is available for high LTV borrowers before the new product becomes available. HARP was initially set to expire at the end of 2016.
Full details about the new refinance product will be announced by Fannie Mae and Freddie Mac in the coming months.
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