FHA Secure Not Helping As Many Homeowners As Forecast
- May 01, 2008
Washington, D.C.–The FHA Secure program has helped fewer than 2,000 homeowners facing foreclosure, according to federal housing data. In recent weeks, FHA officials have said that more than 150,000 people have taken part in the program to refinance at-risk mortgages into government-issued loans.However, most of the homeowners who have refinanced through FHA Secure have been ones who paid their mortgage on time–not homeowners in immediate danger, the New York Times said Wednesday.Initially, housing officials said that the program would help 60,000 borrowers; they are now saying the actual demand from homeowners was much lower than anticipated.Yet officials feel the program has been helpful, assisting homeowners who had predicted not being able to pay their mortgage in the future. Others, including lawmakers and industry analysts, feel the results show that the program hasn’t significantly helped the foreclosure crisis because it failed to save homeowners in immediate danger of losing their homes.At least 1.5 million people are behind in their payments, according to Democratic lawmakers. From October of last year through March 2008, the FHA refinanced just 1,729 delinquent mortgages; by the end of September, estimates indicate 4,000 mortgages will have been refinanced.In 2008, more than 400,000 mortgages will be refinanced via FHA Secure, the Times says–but only 4,000 will involve homeowners who are behind in their payments.