The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

In a purchase market, rookie LOs may struggle

Rookie LOs in 2020 could ride the refi wave and rack up a hefty monthly paycheck without Herculean effort. But these days, they'll have to sing for their supper.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

With a rise in natural disasters, including wildfires, hurricanes, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Mortgage

FHA makes it easier for struggling borrowers to keep their homes

Announces "streamlined" loss mitigation process for mortgage servicers

Borrowers with a high loan-to-value ratio mortgage received some welcome news on Thursday morning when the Federal Housing Finance Agency announced that it plans to extend the Home Affordable Refinance Program into 2017 and unveiled a new refinance program that will take HARP’s place once it expires.

These programs apply to borrowers whose loans are owned by Fannie Mae and Freddie Mac, but what about struggling borrowers whose loans are insured by the Federal Housing Administration?

Well, those borrowers are now about to get some relief of their own, as the FHA announced Thursday that it is making it easier for struggling borrowers to keep their homes.

The FHA said Thursday that it is announcing new procedures to “strengthen the process mortgage servicers use to help struggling families avoid foreclosure and remain in their homes.”

To that end, the FHA is “streamlining” the loss mitigation protocols that mortgage servicers must use considering and utilizing “home retention options,” which are foreclosure alternatives that allow delinquent borrowers to retain their home.

According to the FHA, these changes specifically apply to the process mortgage servicers use when evaluating borrowers for the FHA-Home Affordable Modification Program.

The FHA said that the changes, which servicers must begin using by Dec. 1, 2016, will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.

Additionally, the FHA announced that it is removing “certain obstacles” that will give servicers greater flexibility for evaluating an unemployed borrower’s financial condition and special forbearance agreements.

Specifically, the FHA said that it will now:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their arrearages current versus the previous four-month minimum
  • End the traditional stand-alone loan modification option so borrowers can access the FHA-HAMP option, with its greater payment relief, sooner
  • Eliminate the minimum 12-month delinquency term to qualify for FHA’s special forbearance option, which will allow servicers extend this option to unemployed households sooner in their delinquency

For more information on the FHA’s new policy changes, click here.

Most Popular Articles

These are the hottest housing markets in America

A housing market report from RE/MAX found that 36 of 51 metro areas had double-digit year over year sale price increases in August. Boise led the way.

Sep 17, 2021 By

Latest Articles

Homebuilders are targeting the exurbs and inner suburbs

Confidence among homebuilders steadied over the past month despite continuing material and labor challenges. Builders are targeting exurbs and inner-suburbs

Sep 20, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please