Goals set to approve mortgage modifications faster
The goal of the Obama administration’s Making Homes Affordable (MHA) program was to give homeowners who are facing large mortgage debt help in keeping their homes.
Since it was implemented in March of this year, the program has produced 200,000 trial loan modifications for homeowners facing debt problems. The administration would like to see approval of trial loans sped up and, as a result, officials have met recently with mortgage lenders.
According to reports, the administration officials got mortgage lenders to agree to try and hit 500,000 trial mortgage loans by November 1.
In a separate action by the Department of Housing and Urban Development, Federal Housing Authority (FHA) mortgage loans also saw a change in order to more closely comply with the Making Homes Affordable program. By doing so, many homeowners with FHA loans will be able to lower their monthly mortgage payments.
The MHA program was also recently expanded. Originally, only homeowners whose mortgages were worth 105 percent more than their property could be part of the program, but that limit was increased to 125 percent.