Federal Aid From FHA For Mortgage Borrowers

Real Estate Agent with Ocean View Homes

The President has announced new initiatives to assist borrowers who may be in trouble with mortgages that are considered to be high-risk type of loans.  Federal Housing Administration - FHA -  is planning to help the borrower/homeowners who have a good credit history, but possibly won't be able to or cannot afford their mortgage payments.  They are going to help these people refinance into mortgages that will be insured by FHA.
"The markets are in a period of transition as participants re-assess and re-price risk," the president said. "This process has been unfolding for some time and it's going to take more time to fully play out. America's overall economy will remain strong enough to weather any turbulence."

Real estate and mortgage groups are obviously delighted with the announcement.  The Mortgage Bankers Association Chairman, John Robbins made this comment after hearing the president's announcement: "The president's attention to turmoil in the mortgage markets and the plight of homeowners facing foreclosure will encourage Congress to take the needed steps to reform FHA and help borrowers who face difficulties making their mortgage payments."

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