dcsimg

HUD Secretary Seeks to Piggyback on FHASecure

by Peter G. Miller
September 5th, 2007

HUD Secretary Alphonso Jackson has sent a public letter to Capitol Hill saying that in addition to the 500,000 homeowners who might be helped over two years by the FHASecure program, another 200,000 could be assisted if Congress would pass the FHA modernization bill.

Whether the FHA modernization bill would produce the results claimed by Jackson is a matter of dispute. The GAO, for example, says that under modernization 20 percent of today’s FHA borrowers would not qualify for the program while amost 40 percent would face higher monthly insurance premiums.

Jackson’s letter to Sen. Chris Dodd (D-CT), chairman of the Senate Banking Committee, and Rep. Barney Frank 9D-MA), chairman of the House Financial Services Committee, is below:

September 5, 2007

Dear Chairmen Frank and Dodd,

With Congress returning this week from its August recess, I am writing to urge you to make passage of a Federal Housing Administration (FHA) reform bill, a top legislative priority for the fall session. A modernized FHA is a critical component of the Administration’s efforts to help more American families keep their homes during the current market turmoil.

On Friday, August 31, I joined President Bush and Treasury Secretary Henry Paulson in announcing FHASecure, a plan to allow the Federal Housing Administration to make it easier for families with strong credit histories who had been making timely mortgage payments before their loans reset – but are now in default – to qualify for refinancing. FHASecure will bring stability to the housing market and give eligible families, who were in good financial standing before their loans reset, a chance to keep their homes.

According to industry estimates, there are just under 2 million resets due in the next two years. About one quarter, or 500,000 of those mortgages are going to default. Under FHASecure, we can help approximately half or 240,000 of those hard-working families stay in their homes without using any taxpayer dollars. If Congress approves legislation to modernize FHA, as the President and I have called for, we could help another 200,000 families get into a safe, fair, and affordable FHA-backed loan.

I know you share my strong support for modernizing FHA. With many more families facing increased mortgage payments every day, the time to act is now. Please know I stand ready to work with you to pass a bipartisan, comprehensive FHA modernization bill that will help many families realize and maintain the American Dream of homeownership.

Sincerely,

Alphonso Jackson

  •  | 
  •  | 
  •  | 

 

This entry was posted on Wednesday, September 5th, 2007 at 9:43 am and is filed under , . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “HUD Secretary Seeks to Piggyback on FHASecure”

  1. Carrie Says:

    I am affected by the forclosure problem in Massachusetts and have gone through a finance application with my lender who has done absolutely nothing to help me with my finance problem.

    I have been trying to locate the The progrm Mr. Bush put in effect to help those home owners whose mortgage is in trouble, but with no success. If you could send me the appropriate information for this program and who to contact to get assistance I would appreciate it.

    If I do not get help my family and I will be homeless. I need $9,900 dollors to help me get out of this financial dilemma. The bank will not take a portion of the payment. I am three months behind.

    Please reply if you can direct me to the proper information and resources.

    Thank you and may God Bless!

  2. Peter G. Miller Says:

    If you are a lender based in Massachusetts and perhaps able to help Carrie, please leave a comment with contact information — we will pass it along to Carrie.

Leave a Reply

Are you a Mortgage Lender specializing in FHA Loans? Join our mortgage directory today! Homeowners click here to appy for FHA Loans