FHA expands mortgage relief options

The Federal Housing Administration has expanded the foreclosure prevention options available to borrowers in Presidentially Declared Major Disaster Areas (PDMDAs) with delinquent FHA-insured mortgages to bring their mortgages current without increasing their interest rates or principal and interest payments. Effective immediately, FHA’s “Disaster Standalone Partial Claim” will now be a standard mortgage relief option available for all victims of natural disasters in all PDMDAs. The Disaster Standalone Partial Claim option provides these homeowners with an opportunity to be evaluated for a permanent loss mitigation solution. This option is a solution for many homeowners seeking to cure arrearages and resume making payments without modifying their loan and re-amortizing the loan term.

A letter regarding the additional options has been transmitted to mortgage servicers.