SUMMARY: The HOPE for Homeowners Act
Filed under: HOPE for Homeowners — admin @ 2:51 pm
What’s a housing relief package without relief for the homeowner? So enter a new FHA program authorizing FHA to insure up to $300B of 30 year fixed rate loans at refinance. The program isolates distressed borrowers and would require lenders to write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30 year fixed mortgage at 90% of appraised value. Borrowers will have to share 50% of all future appreciation with FHA. The program will not go into effect until October 1st with a loan limit of $550,440 nationwide.
As a quick comment, isn’t it interesting that the federal government will use the Treasury window to bail out large banks with no hand in their future pocket to assist in recouping loss to the taxpayer? However, for the actual taxpayer, it is a different story.