| HUD ML 2009-03 HOPE for Homeowners Origination and Servicing Guidance Supplement |
| Tuesday, 13 January 2009 | |
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The Dept. Of Housing and Urban Development has released Mortgagee Letter (ML) 2009-03 titled "HOPE for Homeowners Origination and Servicing Guidance Supplement".
On behalf of the Board of Directors (Board) for the HOPE for Homeowners Program, HUD published on October 1, 2008 Mortgagee Letter 2008-29, HOPE for Homeowners Origination Guidance, describing procedures for originating a new FHA-insured mortgage authorized under the Housing and Economic Recovery Act of 2008 called the HOPE for Homeowners Program (H4H Program). That same day, HUD also published on behalf of the Board Mortgagee Letter 2008-30, HOPE for Homeowners Servicing Guidance, which provided HUD-approved servicing mortgagees with servicing and loss mitigation guidance on the Program. Under the H4H Program, certain borrowers facing difficulty in paying their mortgages may be eligible to refinance into affordable FHA-insured mortgages. The H4H Program became effective on October 1, 2008, and may continue to insure new mortgages through September 30, 2011.
On October 3, 2008, the President signed into law the Emergency Economic Stabilization Act of 2008 (EESA), which included a key change to the H4H Program that allows HUD to offer subordinate mortgage lien holders, in exchange for releasing their lien, an upfront payment in lieu of a share of HUD’s fifty percent (50%) interest in future appreciation of the mortgaged property. EESA also amended how the borrower’s pre-Program total monthly mortgage payment debt-to-income ratio (DTI) may be determined. This Mortgagee Letter, which incorporates the changes made by EESA, supplements Mortgagee Letters 2008-29 and 2008-30 and is effective immediately. Mortgagee Letters 2008-29 and 2008-30 continue to apply, except as modified by this Mortgagee Letter. To view the online ML, please click here. Attachments are available from the HUD Website, available by clicking here
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