BUSH ADMINISTRATION TO IMPLEMENT
FHASECURE EXPANSION USING FAIR, FLEXIBLE PREMIUM PRICING
FHA prepares to assist more struggling homeowners while
protecting taxpayers from risk
The Bush Administration issued final guidance that will permit its
flagship mortgage insurance program to assist more homeowners who
are struggling to keep up with their high-cost subprime adjustable
rate mortgages. To ensure taxpayers do not assume the cost of this
expansion, HUD's Federal Housing Administration (FHA) will implement
a fair and flexible premium pricing structure beginning July 14,
2008.
Modifications to FHASecure will help homeowners who can no
longer afford their mortgages and missed up to three monthly
mortgage payments over the past 12 months. As an alternative to
foreclosure, eligible borrowers can refinance with FHA and lenders
can voluntarily write down the outstanding subprime mortgage
principal balances. Implementation of FHA's new premium pricing
plan on July 14 will coincide with the start date to expand
FHASecure.
