NAR Applauds FHA Home Modification Program
On July 30, 2009, the Federal Housing Administration (FHA) announced in Mortgagee Letter 2009-23, FHA's Home Affordable Modification Loss Mitigation Option, to assist FHA borrowers under the Making Home Affordable Program. The new FHA-Home Affordable Mortgage Program (FHA-HAMP) allows borrowers with a FHA loan currently in default to use a partial claim of up to 30 percent of the unpaid principal combined with a loan modification. The objective is to help borrowers who are in default to modify their mortgage and create an affordable payment. The program becomes effective on August 15, 2009.
NAR applauds the new program as another tool in addressing the current real estate crisis. NAR President Charles McMillan said "these changes expand the Obama administration's Making Home Affordable Loan Modification Program to include FHA borrowers, and REALTORS® are optimistic that this will have positive implications for thousands of homeowners. Helping more families stay current on their mortgage and remain in their homes will reduce the impact of foreclosures on families and communities."