The USDA recently issued MRA Notice 10-30-06 serving as a reminder that the Mortgage Recovery Advance Program will remain in effect until April 30, 2007. 

In addition, The Single Family Housing Guaranteed Loan Program (SFHGLP) is encouraging all Loan Holders and Servicers to review their ninety day plus delinquent loan portfolio that is located in the Presidentially declared disaster areas for the Mortgage Recovery Advance Program.  This program can provide assistance to borrowers that may otherwise lose their homes as a result of the impacts associated with the hurricanes of 2005.  All loans in default that have experienced either a verifiable loss of income or increase in living expenses due the impacts of the hurricanes should be reviewed for the program.  Additionally all loans that were previously on a repayment plan or special forbearance agreement due to the impacts of the hurricanes that have since re-defaulted should be reviewed for the program.
 
The SFHGLP announced on August 31, 2006, the expiration of the foreclosure moratorium on SFHGLP loans located the impacted areas.  This announcement should not preclude a Loan Holder or Servicer from considering the Mortgage Recovery Advance Program as a viable solution to resolving a mortgage delinquency.

Please see the following for complete description of the Mortgage Recovery Advance Program

 MRA Announcement 10-26-06.pdf

For further guidance pertaining to the Mortgage Recovery Advance Program, please contact Stuart Walden, Senior Loan Specialist, Single Family Housing Loan Division by email at stuart.walden@wdc.usda.gov or by telephone at (202) 690-4507.