The FHA has announced a new loan repayment plan for borrowers with mortgages who have less than $75,000 in loan debt.
The FHFA says the new plan is aimed at “lowering the threshold for loan repayment for those with low or no income”.
The changes are designed to address concerns about borrowers having to repay more than their current loan amounts in order to qualify for a loan modification.
The new repayment plan is designed to reduce the number of borrowers with low incomes who are eligible for loan modifications.
The changes will take effect in March 2018.
The plan will also introduce a new interest rate cap, which is designed “to ensure that those with little or no loan debt are able to get their loans modified”.
It also introduces new rules that “will ensure borrowers with little to no income are not penalised by having to pay more than the minimum amount for modifications”.
The new rules will also include new protections for borrowers who have an existing mortgage who have taken out a loan for more than $100,000 and have not previously had to repay the loan.
“This is a significant step forward to ensuring that all borrowers are able for the first time to be granted a loan modified modification,” said Andrew Miller, chief executive of the FHA.
“The FHA is taking a comprehensive approach to ensure that borrowers with the lowest levels of debt are not negatively impacted by the new repayment policy.”
The FHSA has also announced that it is considering new changes to the FHRA’s loan modification process.
The government will introduce new regulations in January 2018 to make it easier for FHA and other lenders to approve modifications and to establish “clear rules of evidence”.
The FHB has said the new rules “will further help ensure that FHA borrowers who meet the income criteria are given the opportunity to be approved for loan modification”.
More: The new FHPA will help ensure FHA loans are affordable and that all eligible borrowers can obtain a loan reduction.
FHA and the Department of Housing and Urban Development have also launched a new web portal that will allow borrowers to apply for loan reductions.
New loan repayments: FHB says new loan repayings will be implemented on the following dates: March 1, 2018: All new mortgages will be eligible for a reduction.
April 1, 2019: All borrowers with loan debt under $75 000 will receive a reduction in their loan amount.
May 1, 2020: All loans with loan amount of less than the $75000 loan amount will be automatically reduced to $75 or $100 for borrowers whose income falls below this amount.
June 1, 2021: All loan amounts below the $100000 loan amounts will be reduced to the lower of $7500 or $75.
July 1, 2022: All mortgage repayments of less then $100 000 will be capped at the lower amount of $50 or $50.
August 1, 2023: All mortgages will automatically be reduced for borrowers aged 65 and over to $50 for all borrowers who qualify for the loan reduction or a $100 reduction for borrowers under 65.
September 1, 2024: All existing loans will automatically and automatically be repaid in full at the new lower rate of interest.
October 1, 2025: All FHA mortgages will require borrowers to make at least the $50 reduction for each additional $100 in debt, or $250 reduction for every additional $150 in debt.
November 1, 2030: All current FHA mortgage borrowers who do not qualify for modification will automatically receive a $50 and/or $100 monthly payment.
December 1, 2130: All future FHA home loans will require a $25 reduction for all loans of $100 or more and a $75 reduction for loans of more than a $150,000.
January 1, 1120: All newly purchased loans will be required to be repaid at the higher rate of the existing FHA rate of loan repayment.
February 1, 2015: All former FHA housing loans will now require a minimum reduction of at least $100.
March 3, 2020, March 6, 2021, and April 6, 2022, all new FHC mortgage loans will provide an automatic $100 and/ or $125 reduction to borrowers who cannot make at most $50 per month.
The FHB said the changes will provide “an immediate boost to FHA’s affordability programme”.
The Department of Justice has also revealed it will launch a new online portal to assist borrowers with mortgage applications.
The department said that its website will offer “a comprehensive toolkit for assisting borrowers with FHA applications”.
This new portal will also help the department “better identify, prioritize, and manage the most relevant information for each application”.
“The FHC will continue to work closely with our lenders to identify and resolve any outstanding issues that may arise and will continue its commitment to assist with the transition,” the department said.
The department will also “ensure that