Magazine article Mortgage Banking

Geithner, Donovan Announce MHA Lender/servicer Incentives

Magazine article Mortgage Banking

Geithner, Donovan Announce MHA Lender/servicer Incentives

Article excerpt

In a May 14 press conference, Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan announced new options for homeowners facing foreclosure, through the administration's Making Home Affordable (MHA) program.

"In just over two months, the Making Home Affordable program is up and running, helping our economy recover and making a difference in the lives and livelihoods of thousands of American homeowners," said Geithner. "Historically low interest rates are allowing Americans to refinance and save money, and modifications are helping homeowners avoid foreclosure."

A new component of the MHA program announced at the press conference offers incentives to lenders who allow homes to be disposed of through short sales or voluntary property transfers when a modification is not possible. And home-price-decline protection incentives will provide lenders additional encouragement for modifications in areas where home-price declines have been most severe and it is feared the declines may persist. "These are critical steps in stemming the foreclosure crisis and stabilizing the housing market--both of which are critical to our economic recovery," Geithner said.

"I can't stress enough how important our HUD-approved counseling agencies are to the success of the Making Home Affordable program and, ultimately, to helping to keep American families in their homes," Donovan added. "That's why HUD has requested a $100 million investment in our Housing Counseling Assistance Program for fiscal year 2010--a $35 million increase from our 2009 budget. …

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