FHA ANNOUNCES MOST SIGNIFICANT IMPROVEMENTS TO DATE FOR DISTRESSED NOTES SALES PROGRAM

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FHA ANNOUNCES MOST SIGNIFICANT IMPROVEMENTS TO DATE FOR DISTRESSED NOTES SALES PROGRAM

WASHINGTON – HUD announced today that it is making a series of enhancements to the Department’s Distressed Asset Stabilization Program (DASP) that would have purchasers of severely delinquent mortgages offer qualified borrowers principal reductions and protection from “payment shock.” Certain families with distressed mortgages insured by the Federal Housing Administration (FHA) may soon be eligible for a reduction of their outstanding loan amounts should their mortgages be sold through DASP.

In addition, FHA’s latest enhancements prohibit investors from abandoning low-value properties in high-foreclosure neighborhoods to prevent blight. FHA is also offering greater opportunity for non-profit organizations, local governments and other governmental entities to participate in DASP. Loans are not eligible to be sold through DASP unless and until all FHA loss mitigation efforts are exhausted. On average, mortgages sold through this sales program are 29 months delinquent at the time of the auction. Read additional details on the latest enhancements announced today.

“FHA is deeply committed to protecting struggling homeowners and making certain they have the greatest opportunities to avoid foreclosure and remain in their homes,” said Ed Golding, HUD’s Principal Deputy Assistant Secretary for the Office of Housing. “While thousands of homeowners avoided foreclosure through this note sales program, we continue to explore new ways to help these families and to offer more opportunities for public-minded organizations to have a seat at the table.”

FHA’s new DASP enhancements include:

  • Principal Reduction/Capital Arrearage Forgiveness – Principal forgiveness is the first option investors must consider offering to borrowers when evaluating them for a modification.
  • Payment Shock Protection – FHA will limit interest rate increases to no more than one percent per year after a five-year period where the rate is fixed; this is consistent with the Home Affordable Modification Program (HAMP).
  • Walk-Away Prohibition – Effective immediately, FHA will prohibit any purchaser of single-family mortgages under DASP from abandoning lower value properties in order to prevent neighborhood blight.
  • Alternative Bidding for Non-Profit Buyers – This enhancement will allow qualified non-profit organizations to bid on a partial pool of notes up to five percent of a National Pool and to pay the reserve price. This alternative offers another opportunity for non-profit organizations and local governments to participate in DASP along with those announced last year (non-profit/government-only NSO pools and direct sales offerings).
  • Streamline Direct Sales to Interested Government Entities – FHA is providing new standard guidance on the sale of distressed mortgages directly to qualified government entities and local governments. This will provide greater education and awareness among these public entities which may be interested in participating in DASP.
  • Target loans for DASP sales based on the interest of non-profits and local governments-FHA will enhance its efforts to identify and offer loans in targeted distressed areas to non-profits and local governments. FHA will continue its outreach to solicit their interest in geographically targeted loan sales. These efforts are aimed at helping vulnerable neighborhoods maintain more stable communities.

Last year, FHA strengthened DASP to further help defaulting families still living in their homes and to allow for greater participation among non-profit organizations. FHA expanded a foreclosure moratorium from six-to-12 months, requiring purchasers of these distressed mortgages to suspend any foreclosure action against these families. In direct response to non-profit organizations seeking to participate in DASP auctions, FHA provided more advanced notice of pending sales and extended the due diligence periods to accommodate these organizations. In addition, FHA offered a ‘first look’ opportunity for non-profits to purchase vacant properties to be occupied by owner-occupants. Finally, FHA created specific pools of mortgages that would be exclusively offered to non-profit organizations and local governments.

SOURCE: http://portal.hud.gov

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4closureFraud.org

Comments
8 Responses to “FHA ANNOUNCES MOST SIGNIFICANT IMPROVEMENTS TO DATE FOR DISTRESSED NOTES SALES PROGRAM”
  1. lvent says:

    They want us to maintain trivial lives so things like the dogs going to the groomers tomorrow morning don’t seem trivial.

    I think it’s because debt fraud by banksters tries to make the trivial seem important so we don’t see we’re being equity stripped unlawfully in every way imaginable which is how mobsters steal.

  2. lvent says:

    They’re thieves & that’s the essence of SECURITIES FRAUD.

  3. mike Drouin says:

    DASP ??? Distressed Asset Stabilization Program ??? You can bet your ass ” stolen Property ” is a distressed asset !!!! and the remedy is to keep paying the thieves !?!? Our Alleged Representatives have turned this Country into a Banana Republic by rewarding criminal behavior and punishing their citizens who are trying to use the Law to protect themselves !!!! The Intentional Tort Of Conversion used by the Banks is ILLEGAL and Rescission under TILA is our remedy…. So much for the FHA

  4. lvent says:

    When I’m forced to leave this FC crime scene on my title on 14867 LANDINGS LANE in OAK FOREST ILLINOIS & go to the next one, I’m going to give the location of that one too.

    Because when too many cooks spoil the soup, the whole thing is no good & this entire thing has been done MAFIA STYLE from its fraudulent inception.

  5. lvent says:

    If BARNEY FRANKS BROTHEL got entered into evidence that would cause the dismissal of every single case because that’s legal evidence of FRAUD IN THE FACTUM.

  6. lvent says:

    They’re trying to make their fraud look legitimate because they’re control freaks of their own fraud.

    They can’t provide one document that says they’re legitimate.

    Their note farce is substandardized housing leasing fraud redistributed to themselves under the guise of servicing their intended brothels.

    When MAX KEISER said that pimp JAMIE DIMON he wasn’t kidding.

  7. neidinhenard says:

    How does this help or do more harm to the homeowner that has spent years paying out $$$$$ in legal fees etc.
    It’s critical that the victims who have been unbelievably harmed, irreversible damages, financially and emotionally. The FRAUD, FORGERY’S, PERJURY, FALSE AND/OR MISREPRESENTING OF THE TRUE FACTS IN PLEADING PAPERS FILED IN THE COURT and perjury this is a fact. I firsthand know to be true. The Fraud on the court’s is a crime against the Public not only those victims that had their homes stolen illegally via very criminal wrongful nonjudicial foreclosures sales.
    Many of us have LOST the basic simple middle-class quality of life and some of our constitutional rights

    How does this help or do more harm to the homeowner that has spent years paying out $$$$$ in legal fees etc.
    It’s critical that the victims who have been unbelievably harmed, irreversible damages financially and emotionally via the current and past practices of law enforcement agencies, abuse and misuse of civil court procedures allowed by bias judges making bad ruling / decisions. All you out there still in the fight be aware of the they settlement agreement offer! after interrupting my finishing this comment from a phone call from my attorney who is confident qualified and experienced
    The FRAUD, FORGERY’S, PERJURY, FALSE AND/OR MISREPRESENTION OF THE TRUE FACTS IN PLEADING PAPERS FILED IN THE COURT this is a fact I have firsthand knowledge I assure you to be true the unethical manipulation of our judicial system. Isn’t fraud on the court prosecutable? the court’s victims not only had their homes stolen illegally via very criminal wrongful nonjudicial foreclosures sales.
    Many of us have LOST the basic simple middle-class quality of life our constitutional rights
    I question who will benefit? Who will the investors be?? How long has this been in the works. Lies Lies and more Lies.

  8. Jo Henrion says:

    How sweet! Why don’t they try to help these people get their fraudulently foreclosed homes back instead?

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