NAR urges HUD to revamp FHA program
 

WASHINGTON – April 10, 2007 – The National Association of Realtors® (NAR) yesterday encouraged the Department of Housing and Urban Development (HUD) to quickly change the FHA mortgage insurance program. In a letter sent to HUD Secretary Alphonso Jackson, NAR President Pat Vredevoogd Combs strongly urged HUD to change FHA rules and waive the requirement that a homeowner’s mortgage be “current” in order to refinance into an FHA loan product.

“Many homeowners who were able to make timely payments under the original terms of their loan are finding it difficult to make payments after rate adjustments,” says Combs. “We believe FHA can design a mechanism where credit-worthy borrowers could refinance subject to prudent guidelines, and therefore avoid losing their homes. … The goal for all – government, lenders, banks, individuals and Realtors – should be to help keep people in their homes and to avoid or minimize foreclosures.”

NAR encouraged HUD and the FHA to undertake a “robust public education campaign” to promote foreclosure prevention and raise awareness of FHA and HUD programs. NAR has partnered with HUD and FHA in the past to create and distribute brochures designed to inform potential homebuyers about the various FHA programs. NAR also continues to be a consistent advocate for FHA modernization to keep the products and services they offer pertinent to today’s consumers and housing market.

“We believe that with some minor regulatory adjustments to the FHA program, a significant subset of borrowers facing the prospect of foreclosure could safely refinance into an FHA mortgage. We are committed to continue our efforts with HUD and FHA. We not only want to see people achieve the American dream of homeownership, but also we want them to keep it,” says Combs.
 

© 2007 FLORIDA ASSOCIATION OF REALTORS®