Federal housing officials have compiled a list of lenders participating in the HOPE for Homeowners program, which they say could help as many as 400,000 homeowners avoid foreclosure by refinancing problem loans into new 30-year fixed-rate mortgages insured by the Federal Housing Administration.

Federal housing officials have compiled a list of lenders participating in the HOPE for Homeowners program, which they say could help as many as 400,000 homeowners avoid foreclosure by refinancing problem loans into new 30-year fixed-rate mortgages insured by the Federal Housing Administration.

When released by the Department of Housing and Urban Development Thursday, the list of participating lenders totaled 67 businesses. But HUD said the list will be updated as new lenders enroll in the HOPE for Homeowners program, which kicked off Oct. 1.

Borrowers who hope to refinance into an FHA-guaranteed loan under the HOPE for Homeowners program need the cooperation of their existing lender or loan servicer, as the program will only provide loans equal to 90 percent of a home’s current appraised value.

The holder of the existing mortgage may choose to foreclose on a troubled borrower or offer them a workout or loan modification rather than accept the losses associated with declining property values, HUD acknowledges.

When contacting any of the HOPE for Homeowners lenders on the list, borrowers "are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage," HUD advised.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription