Comments Due to NAFCU: HUD - Increased Forty-Year Term for Loan Modifications

Important Regulatory Dates Add to Calendar 2022-05-12 17:00:00 2022-05-12 17:00:00 Comments Due to NAFCU: HUD - Increased Forty-Year Term for Loan Modifications NAFCU would like to highlight the following: Increasing the maximum term limit to 480 months would allow mortgagees to reduce the borrower’s monthly payment as the outstanding balance would be spread over a longer time frame. A lower monthly payment is a key element to bring the mortgage current, prevent imminent re-default, and keep the borrower in their home while continuing to build wealth through homeownership. The FHA also added a 40-year mortgage modification option for mortgage servicers to use with its partial claim option for FHA Title II forward mortgages. Comments due to NAFCU: May 12, 2022 Comments due to HUD: May 31, 2022 Comment now   NAFCU will send comments on behalf of its members to HUD by their deadline (May 31, 2022). Location NAFCU digital@nafcu.org America/New_York public

NAFCU would like to highlight the following:

  • Increasing the maximum term limit to 480 months would allow mortgagees to reduce the borrower’s monthly payment as the outstanding balance would be spread over a longer time frame.
  • A lower monthly payment is a key element to bring the mortgage current, prevent imminent re-default, and keep the borrower in their home while continuing to build wealth through homeownership.
  • The FHA also added a 40-year mortgage modification option for mortgage servicers to use with its partial claim option for FHA Title II forward mortgages.

Comments due to NAFCU: May 12, 2022

Comments due to HUD: May 31, 2022

Comment now  

NAFCU will send comments on behalf of its members to HUD by their deadline (May 31, 2022).