Wednesday, August 27, 2008

FHA Rescue Program - FHA Secure

The Housing Recovery Act of 2008, H.R. 3221 has the consumer and mortgage professional in a state of total confusion. This recovery act is suppose to be the answer for all the wrongs in the mortgage industry. It is so over hyped and misunderstood. My personal opinion is that it is a total boondoggle put together by a bunch of politicians to further their own agenda or make themselves out to be hero's, or to get their names in the headlines.

I get questions every day like the following: "I have a $40,000 tax lien on my home, can I get the FHA Rescue program??"

This individual was actually referring to the FHA Secure Program which was available in September of 2007 and will terminate December 31, 2008. (Mortgagee Letter 2007-11)

This is a good program but it too is overstated and misunderstood. FHA Secure does NOT modify or waive FHA underwriting guidelines and requirements. For a better understanding of this program you should read the mortgagee letter here.



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