The Bush Administration announced today that the FHASecure program will be expanded, with plans to refinance 500,000 borrowers into prime-rate FHA-insured mortgages by year-end.
And those who missed monthly mortgage payments three times during the last 12 months will also be able to utilize the program, although only to a maximum LTV of 90 percent.
But those with outstanding mortgage balances above these limits may also be eligible for the program if their current lenders agree to write down the principal balance.
The FHA also said it would be simultaneously updating the pricing policy for premiums based on the individual borrower’s credit risk profile.
In related news, White House press secretary Dana Perino told reporters that the Senate’s housing bill will likely be vetoed by President Bush.
Perino noted that the Bush Administration supported modernization of the FHA, reformed oversight of Fannie and Freddie, and expansion of programs like FHASecure and Hope Now.