Housing.com News, Analysis & Opinion: FHA Could Help Struggling Homeowners

The FHA is getting renewed attention in plans to help struggling homeowners. The following are some of the ideas being discussed:

*The FHA would help low and middle income homeowners avoid foreclosure.
*The FHA could offer refinancing options to homeowners, including those who aren't yet in defualt, but who risk falling behind in payments that jump when rates are reset.

For this to happen, Congress must reform the FHA and give the authority more tools to assist homeowners. The FHA is currently constrained from dong more now becuase of limits on the size of loans it can back and some requirements that borrowers must meet.

Senate banking chairman Christopher Dodd said recently that FHA reform will be among his top priorities.

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From the WSJ: The FHA is getting renewed attention in plans to help struggling homeowners. The following are some of the ideas being discussed: *The FHA would help low and middle income homeowners avoid foreclosure. *The FHA could offer refinancing options to homeowners, including those who aren't yet in defualt, but who risk falling behind in payments that jump when rates are reset. For this to happen, Congress must reform the FHA and give the authority more tools to assist homeowners. The FHA is currently constrained from dong more now becuase of limits on the size of loans it can back and some requirements that borrowers must meet. Senate banking chairman Christopher Dodd said recently that FHA reform will be among his top priorities.