New Mortgage Relief for Military, Veterans and FHA Borrowers
In 2012, a housing initiative was launched for servicemembers, veterans and borrowers with mortgages insured by the Federal Housing Administration (FHA).
Under the plan, lenders will be required to review all foreclosures of servicemembers and veterans since 2006. If it’s found that they were wrongly foreclosed upon, lenders must compensate these borrowers.
Other provisions of the plan include:
- a review of denied refinancing requests from servicemembers and veterans, and compensation if it’s found they were wrongly denied the opportunity to refinance;
- relief to servicemembers who were forced due to sell their homes because of Permanent Change of Station orders;
- a $10 million payment from the banks into the Veterans Housing Benefit Program Fund; and
- reduced refinancing fees for FHA borrowers in good standing.
For the latest information regarding the National Mortgage Settlement, visit this Internal Revenue Service site.