Peter Idziak spoke with mortgage trade publications to discuss the Federal Housing Authority’s Payment Supplemental Partial Claim proposal, a new home-retention option designed to help struggling homeowners meet their mortgage obligations. The program would allow mortgage servicers to use the FHA Partial Claim to bring a borrower’s mortgage current and provide temporary reductions to their monthly payments for up to five years.
Following the announcement, Idziak questioned whether the FHA, part of the U.S. Department of Housing and Urban Development, has the statutory authority to offer the program. “The National Housing Act only allows HUD to pay partial claims for arrearages and principal reductions,” said Idziak. “The monthly payment subsidies under the new Payment Supplement Partial Claim appear to be neither, so it’s a bit of an open question whether HUD has the statutory authority to implement this program.”
Please see below for Idziak’s recent interviews with National Mortgage News and National Mortgage Professional on the topic:
- National Mortgage News – FHA releases draft of new foreclosure prevention option
- National Mortgage Professional – FHA Proposes New Program To Help Struggling Homeowners