Hope for Homeowners is the widely discussed FHA refinance loan that requires lenders to reduce the principle mortgage balances down to 90% of today’s appraised value.
Fox Business New’s Rich Edson reports on Rep. Barney Frank’s work to overhaul the Hope for Homeowners program. So far, this FHA loan program has been unsuccessful. FHA lenders offering the H4H home refinancing product would have to reduce the mortgage balance to 10% below the current market value.
Government eliminates some liability for mortgage lenders who participate in this FHA loan program design to minimize the foreclosure crisis with a loan modification type solution for struggling homeowners.
