The FHA Hope for Homeowners Program starts today!
Good news, right?
It depends on whether or not your current lender is willing to participate and as we have mentioned before, many lenders are not excited about this program.
At a House financial services hearing last Wednesday, a top Bank of America executive, Michael Gross, said Congress may have unrealistic assumptions about how many lenders and investors will agree to participate in Hope for Homeowners refinancings.
“My biggest concern,” said Gross, “is that expectations for (this) program might be too high.”
In the meantime, borrowers who believe they might benefit from a Hope refinancing, should start talking with their servicers to see whether there’s a chance. The law expressly makes the decision voluntary for all financial institutions — borrowers cannot compel them or take them to court to force their hands.
Do you think that you are a candidate for the FHA Hope for Homeowners Program?
The first step is to get on the phone with your current lender and find out if they are participating in the Hope for Homeowners Program before you start talking with anyone about refinancing your loan.