Human Services News

From HUD Press Releases:

HUD's Federal Housing Administration and the Minnesota Housing Finance Agency (HFA) today announced a first-of-its-kind agreement to promote safer, affordable government-insured mortgages.

The Memorandum of Understanding (MOU) forges a working relationship and commitment by the federal and state government to help Minnesotans continue to access safer and more secure FHA-insured mortgages.

"For many years, people in the industry and in state government have expressed the need for a clear, mutually-agreed upon memorandum of understanding between FHA and states for the financing of single family properties," said HUD's Assistant Secretary for Housing-Federal Housing Commissioner Brian D. Montgomery.

"This MOU will help people in need right now by harmonizing the work of FHA and the Minnesota Housing Finance Agency, and by making FHA loans more available to those who qualify for them."

As the housing market changes and credit contracts, the MOU between FHA and the Minnesota HFA will establish a partnership committed to increasing access to FHA-insured mortgages throughout the state.

Specifically, the MOU allow FHA and Minnesota Housing to schedule statewide training and information sessions for lenders, realtors and housing counselors designed to increase familiarity and availability of FHA-insured loans.

"We have an obligation to do everything possible to help people keep their home or to buy a new home they can afford.

This MOU will help people in need right now by harmonizing the work of FHA and the state housing finance agency, and by making FHA loans more available to qualified borrowers," Montgomery stated.

Since September 2007, FHA has insured nearly 250,000 refinanced loans nationwide.

In July 2008, FHA will expand its FHASecure refinancing product to more homeowners past due on their mortgages using a fair, flexible premium structure.

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