General World News

Industry supports FHA’s 40-year loan term option — with caveats

The deadline for the mortgage industry to chime in on the Federal Housing Administration‘s (FHA) proposed 40-year loan modification rule was at the end of May. While four prominent trade groups voiced support, they also proposed some tweaks.

The Mortgage Bankers Association, Housing Policy Council, National Association of REALTORS and the American Bankers Association agreed a 40-year loan modification should be a permanent fixture in the administration’s loss mitigation handbook, suggesting it would benefit FHA borrowers and the administration.

The trade groups in tandem applauded the FHA for moving to align its loss mitigation policy with other housing agencies, including Fannie Mae details ⇒

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