May 7, 2008
MORTGAGEE LETTER 2008-13
TO: ALL APPROVED MORTGAGEES
SUBJECT: Expansion of FHASecure
In Mortgagee Letter 2007-11, the Federal Housing Administration announced FHASecure, a temporary initiative to permit lenders to refinance delinquent adjustable rate mortgages (ARMs) and/or to offer new subordinate financing where the combined loan-to-value ratio exceeds the applicable FHA loan-to-value ratio and geographical maximum mortgage amount…
What this mean is that the FHA Insurance Program will now insure home loans that will put the combination of the FHA Insured Loan plus the existing or other subordinated second mortgage loan that can exceed 100% Combined Loan to Value and can exceed the current FHA Maximum County Loan Limits.
Your tax dollars at work as they try to put humpty dumpty back together again.
These two combined liens will exceed market value, will be difficult if not impossible to sell and will likely mean borrowers will now have to default on their FHA loan to get out from under their under water property loans. Your tax dollars will have to cover the default balances.
Fortunately, these loans are assumable if you can find a sucker that will want to pay more than market value to buy the home.
Gailon arthur Joy
Author
Topic: FHA Expands FHA SECURE Program for underwater homes (Read 12277 times)
