article thumbnail

FHA adds 40-year loan term to COVID-19 arsenal

Housing Wire

The Federal Housing Administration told mortgage servicers that they can now offer a 40-year loan term as a COVID-19 recovery option. The administration added that some loans funded through mortgage revenue bonds may not qualify for the new loss mitigation option. Comments from the mortgage industry are due by May 31.

Loans 508
article thumbnail

Industry supports FHA’s 40-year loan term option — with caveats

Housing Wire

The deadline for the mortgage industry to chime in on the Federal Housing Administration ‘s (FHA) proposed 40-year loan modification rule was at the end of May. It remains unclear when the FHA plans to add the 40-year loan modification option to its servicing and loss mitigation handbook.

Loans 448
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

FHA publishes final rule on the 40-year loan modification

Housing Wire

The Federal Housing Administration ( FHA ) announced this week that a final rule related to an increased 40-year loan modification term has been published in the Federal Register. The rule allows mortgagees to increase the maximum term of an FHA-insured mortgage loan modification from 360 to 480 months following a default.

Loans 370
article thumbnail

FHFA assisted nearly 44,000 troubled homeowners in Q4 2023

Housing Wire

Of these actions, 2.682 million have been permanent loan modifications and 3.519 million actions have been other forms of assistance that allowed troubled borrowers to stay in their homes. Loan modifications dropped from 14,363 in Q3 to 12,758 in Q4, an 11.2% The rate for U.S.

VA loan 487
article thumbnail

FHFA prevention actions surpassed 52K in Q4 2022

Housing Wire

According to the report, about 37% of the loan modifications completed in Q4 reduced borrowers’ monthly payments by at or over 20%. Comparatively, the serious delinquency rate for Federal Housing Administration (FHA) loans was 4.4% Total property acquisitions decreased 9% to 1,706 as dispositions decreased by 2% to 977 in Q4.

article thumbnail

FHFA extends forbearance period to 18 months

Housing Wire

To accommodate the large volume of loans still in forbearance, mortgage servicers must have functional, flexible and effective forbearance processes in place. The new date matches the moratorium set by HUD for FHA and USDA loans. From forbearance to post-forbearance: How to make the process effective. Presented by: FICS.

Mortgages 523
article thumbnail

Housing coalition publishes recommendations for GSEs’ ‘Duty to Serve’ plans

Housing Wire

The Housing and Economic Recovery Act of 2008 (HERA) “codified housing goals and added a Duty to Serve, which gives FHFA the tools to ensure that Fannie and Freddie stay focused on affordable housing and serving the housing needs of low- and moderate-income families instead of using a federal backstop to just cherry-pick the most lucrative loans.”