Industry NewsMortgage

Bill revamps ‘Hope for Homeowners’

FHA refi program hasn't taken off

President Obama has signed into law legislation intended to resurrect the Hope for Homeowners refinance program by relaxing eligibility requirements and providing incentive payments to loan servicers and originators.The Hope for Homeowners loan refinance program was supposed to allow as many as 400,000 upside-down borrowers to refinance into more affordable FHA-backed loans by late 2011. But lenders were required to make hefty principal write-downs, and only a few dozen homeowners have been able to take advantage of the program since it was launched in October. Former Secretary of Housing Steve Preston complained that Congress hobbled the program by making it too restrictive.S 896, the Helping Families Save Their Homes Act, lowers Hope for Homeowners program fees, streamlines borrower certification requirements, and allows the the Department of Housing and Urban Development to make incentive payments to participating loan servicers and originators.Before signing the bill, Obama said ad...

Comments