New Mortgage Relief for Military, Veterans and FHA Borrowers
On March 6, 2012, President Barack Obama announced a new housing initiative 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.
This new agreement is in addition to the landmark settlement on foreclosure and mortgage fraud the federal government and state attorneys general reached in February 2012.
For information on who to contact to see if you’re eligible for relief, see “For Further Questions” on the White House Fact Sheet.