| The new FHA Secure loan program is a new | | | | into the loan balance. However the home owners must |
| refinance option that is being offered through the FHA | | | | prove that the payment increase from the adjustable |
| to home owners that have fallen behind on their | | | | rate mortgage was the cause of their delinquent |
| mortgage payments due to increasing interest rates | | | | mortgage payments and not lack of financial |
| and payments on their adjustable rate mortgages. The | | | | responsibility. FHA will also permit back taxes and |
| FHA Secure loan program is the Bush administrations | | | | insurance to be included into the new loan amount. No |
| initiative to slow the record foreclosure rate in America. | | | | cash out refinances are allowed with FHA secure. |
| The FHA Secure loan program is designed to help | | | | FHA Secure will be underwritten with standard FHA |
| home owners who took out subprime adjustable rate | | | | guidelines that ensure the borrowers have the ability to |
| mortgages and other borrowers facing foreclosure | | | | pay the new mortgage note and will also require home |
| due to an adjustable rate mortgage. Many home | | | | owners to escrow their property taxes and insurance. |
| owners are finding the new increased mortgage | | | | The FHA would have the ability to adjust the |
| payments difficult or impossible to pay every month | | | | mortgage insurance premiums on each loan on a case |
| and many home owners are now sliding towards | | | | by case basis depending on the risk factor of the |
| foreclosure. The FHA secure program would allow | | | | borrower. FHA hopes the insurance adjustment option |
| these home owners to refinance their adjustable rate | | | | will help more homeowners qualify and save their |
| mortgage into a more stable fixed rate mortgage and | | | | homes from foreclosure. The new program will allow |
| include up to 6 months past due mortgage payments | | | | home owners to refinance up to 97. |