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February 26, 2008HUD Announces More Ohians Turning to Affordable Government-Backed Mortgages |
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From HUD Press Releases: Thousands of Ohioans are turning to HUD's Federal Housing Administration (FHA) to find an affordable mortgage refinancing solution, and many more could be helped by bipartisan legislation awaiting final approval by Congress, U.S. Housing and Urban Development Secretary Alphonso Jackson announced today. While participating in a roundtable discussion with Ohio Congressman Pat Tiberi (OH-12), Columbus-area realtors and local community stakeholders, Jackson said Ohio families refinancing with FHA more than doubled in December 2007, compared one year earlier. FHASecure refinances mortgages that are current or past due because of an interest rate reset. More than 90 percent of borrowers who refinanced from the subprime market into FHA now have 30-year fixed rate loans with much lower monthly mortgages. Nationwide, FHA has seen a dramatic increase in business from homeowners trying to refinance out of their high-cost, high-risk subprime loans. Those rebate checks can be used to help pay off overdue mortgage payments or other essential bills," Jackson added. To encourage more families to consider FHA as an affordable mortgage-insurance alternative, HUD is sending letters to 850,000 Americans with resetting rates who might qualify for more affordable FHA loans. It would provide flexible down payment requirements and higher loan limits. The bill also would enable FHA to fairly price premiums, taking risk into account. To combat predatory lending, HUD's created a Fair Lending Division. These "best practices" will be made available to all 50 states. Jackson also highlighted the HOPE NOW Alliance, an industry effort to help families avoid foreclosure.
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