White House Nixes FHA Secure Programby Tim Manni
The White House has decided not to extend their FHA Secure Program past its original termination date of December 31, 2008. High hopes for the program intended to “help people who have good credit but who have not made all of their payments on time because of rising mortgage payments,” could have easily been extended past the original termination date, but poor results nixed the program.
According to the latest issue of National Mortgage News, the program, launched in August of 2007, “refinanced only 4,000 delinquent borrowers. But the news that FHA would refinance subprime adjustable-rate mortgages attracted over 460,000 borrowers who were making their payments but wanted to refinance into a lower cost FHA fixed-rate mortgages.”
Despite interest from HUD and various lenders to keep the program going, the White House decided it was time to end the initiative. The FHA Secure Program is not the only federal loan-mod program to prove unsuccessful. HUD’s Hope for Homeowners has come under repeated criticism for failing to achieve their goals.
Have any of you been a part of an unsuccessful loan modification?