BrokerageIndustry News

FHASecure refi program to sunset

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The Bush administration will not continue the FHASecure mortgage refinance program for delinquent borrowers beyond 2008, but homeowners who are behind on their mortgage payments may still be eligible to refinance through the recently expanded FHA HOPE for Homeowners program.In a letter to lenders, Federal Housing Commissioner Brian Montgomery said continuing FHASecure beyond the planned Dec. 31 termination date would have led to losses for the FHA mortgage insurance fund. The losses would have required either substantial across-the-board single family program premium increases, or suspending FHA’s single-family insurance programs altogether, Montgomery said.Any FHASecure loans for which the lender has requested a case number and taken a loan application before Wednesday may still be processed, the letter said.Created in August 2007, FHASecure helped about 400,000 homeowners with adjustable-rate mortgages refinance into more affordable government-backed fixed-rate loans. For borrowers...