Federal Government Fast-Tracks Mortgage Modifications for Homeowners
The Treasury Department, HOPE NOW, and the Federal Housing Finance Agency (FHFA) announced today a new fast-track approach for homeowners behind in their mortgage payments. Specifically, the program streamlines the modification process for homeowners who are: 1) three or more monthly payments behind, 2) own and occupy their home as their primary residence, and 3) have not filed for bankruptcy. The program attempts to move such homeowners to monthly payments of not more than 38% of their household gross monthly income. For more information, click here to read FHFA Director James Lockhart's statement and related questions and answers relevant to homeowners and mortgage servicers, which follow his remarks.
