DFI Applauds The FHA’s Efforts To Assist Homeowners Facing Foreclosure In Obtaining Loan Modifications

OLYMPIA, WA – August 5, 2009 – (RealEstateRama) — “I am encouraged by recent steps taken by the Federal Housing Administration to meet the needs of homeowners struggling to keep their homes,” Washington State Department of Financial Institutions Director Scott Jarvis said today. “These efforts, combined with newly-implemented legislation in Washington will help ensure stronger protection of, and support for, our state’s homeowners.” 

The U.S. Department of Housing and Urban Development (HUD) announced July 30 the Federal Housing Administration (FHA) is altering its loan modification program to align with President Obama’s Home Affordable Modification Program.

The Helping Families Save Their Homes Act of 2009, signed into law on May 20, allows the FHA to give qualified FHA-insured borrowers the opportunity to reduce their monthly mortgage payment by modifying the mortgage. The FHA released the program’s implementation guidelines July 20 and expects all servicers to implement the changes by Aug. 15.

FHA borrowers who are having trouble making their mortgage payments should contact their loan servicer or HUD’s National Servicing Center at 888.297.8685 to determine if they qualify for the FHA-Home Affordable Modification Program. The Mortgagee Letter (Word)*, with detailed information about the program, is available on the HUD Web site. Non-FHA borrowers can find information about the Obama Administration’s Making Home Affordable program at www.makinghomeaffordable.gov.

Washington homeowners may also be able to receive on-site loan modification assistance at foreclosure prevention workshops throughout the state. Lenders and counselors recently assisted an estimated 700 families at three workshops in Everett, Seattle and Tacoma conducted July 23, 24 and 25. Visit www.homeownership.wa.gov for details on upcoming events.

About DFI
www.dfi.wa.gov ▪ 360.902-8700 ▪ 877.746-4334
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department has won numerous awards for its financial literacy and outreach programs developed to protect consumers from financial fraud. In addition to posting information about licensees and administrative actions, the DFI’s Web site features consumer tips on a variety of financial fraud-related topics. DFI also hosts a financial education blog http://finlit.blogspot.com, a financial education Twitter page http://twitter.com/fined4all, a financial education YouTube page (where we’ve compiled a host of financial education videos from a variety of reliable resources) http://www.youtube.com/wadfi, a consumers Twitter page http://twitter.com/dficonsumers and a financial education calendar for Washington State http://dfi.wa.gov/consumers/calendar.htm.

Contact:
Lyn Peters, Director of Communications
PH (360) 349-8501 lpeters (at) dfi.wa (dot) gov

Scott Jarvis, DFI Director
PH (360) 902-8700 sjarvis (at) dfi.wa (dot) gov