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BUSH ADMINISTRATION TO HELP NEARLY
ONE-QUARTER OF A MILLION HOMEOWNERS
REFINANCE, KEEP THEIR HOMES
FHA to implement new “FHASecure” refinancing product
WASHINGTON - President George W. Bush today announced that HUD’s
Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by
enhancing its refinancing program effective immediately. Under the newFHASecure plan, FHA will
allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing.
In addition, FHA will implement risk-based premiums that match the
borrower’s credit profile with the insurance premium they pay-i.e., riskier
borrowers pay more. This common-sense, risk-based pricing structure will
begin on January 1, 2008.
“Many hard-working American families who were able to make their mortgage payments under the initial teaser terms of the exotic loan are now struggling to make ends meet because their rates have doubled or tripled,” said HUD Secretary Alphonso Jackson. “FHASecure will bring stability to the housing market and give eligible families who were in good financial standing before their loans reset a chance to keep their homes.”
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