According to the BrokerUniverse Newsletter for 9/6/2007, the Federal Housing Administration is going to unveil in a few days a new program that is designed to help borrowers who are facing loan default due to subprime adjustable rate mortgage resets.  This new program, according to the article, is made for consumers who were on time with their mortgage payments up until the time of the subsequent rate adjustment and payment increase.  

The maximum loan to value allowed will be FHA's 97.75% LTV based on an appraisal.  Up to 6 months missed payments can be rolled into the new loan amount.  Hopefully this program will be run efficiently and be of benefit to many consumers.  It is unclear what other documentation will be required for the "FHASecure"  program.  I for one, am quite excited to see how this programs fares.

Another interesting note about the FHASecure Initiative is that subordinate financing may be allowed over and above the applicable typical FHA Loan to Value and loan limit.