Magazine article Mortgage Banking

Obama Administration Extends Help for Unemployed Homeowners

Magazine article Mortgage Banking

Obama Administration Extends Help for Unemployed Homeowners

Article excerpt

On July 7, the Obama administration announced it was extending the minimum forbearance period from four months to 12 months for eligible unemployed homeowners under the Federal Housing Administration's (FHA's) Special Forbearance Program. The program changes will also require servicers to "remove upfront hurdles to make it easier for unemployed borrowers to qualify," the administration said in a news release.

All FHA-approved servicers must participate in FHA's Loss Mitigation Program, which includes the Special Forbearance Program. At the end of the forbearance period, servicers are required to evaluate the borrower for all additional, applicable foreclosure-assistance programs and notify borrowers in writing if they qualify for any other option for assistance. If the borrower fails to qualify for other options, servicers must provide the homeowner with the reason for denial and allow that borrower at least seven calendar days to submit added information that might impact the servicer's evaluation.

In announcing the changes, Shaun Donovan, secretary of the Department of Housing and Urban Development (HUD) said, "Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.