| The new FHA Secure program would help home | | | | and insured by the FHA. The standard FHA |
| owners who have fallen behind on their home | | | | underwriting guidelines will apply to the FHA Secure |
| mortgage and possibly facing foreclosure. The new | | | | program and a new FHA approved appraisal will be |
| program would allow the delinquent home owners to | | | | ordered for the property. Under the new plan |
| refinance their Adjustable Rate Mortgages. | | | | Borrowers will be eligible to refinance up to 97.75% of |
| Adjusting variable rate mortgages have caused many | | | | the total appraised value of their home. FHA will also |
| homeowners to fall behind on their mortgage | | | | charge mortgage insurance premiums based on the |
| payments and is one of the leading causes of the | | | | individual risk of each mortgage refinance loan that is |
| record high foreclosure rate in the United States. | | | | written. By using the FHA Secure program with the |
| Traditionally a home owner with a late mortgage | | | | standard FHA underwriting standards FHA will be able |
| payment would not qualify for an FHA mortgage | | | | to increase the availability of the program and help |
| refinance but Under the new FHA Secure proposal | | | | even more troubled home owners. |
| home owners would be eligible for an FHA refinance if | | | | The FHA Secure refinance program will not however |
| they can prove the late mortgage payments were | | | | help home owners who have properties that have |
| directly caused by an adjusting mortgage rate that has | | | | depreciated in value and are now worth less then the |
| increased from the standard introductory rate. | | | | current mortgage balance. it is estimated that an initial |
| FHA Secure loans will be made by private mortgage | | | | 80,000 home owners may be helped by the FHA |
| lenders, mortgage brokers and banks and will be | | | | secure program. |
| availible to home owners at the current market rate | | | | |