HUD: Foreclosure Program Will Not Be Ready by October

American Banker (07/28/08); Kaper, Stacy
Although the housing program recently passed by Congress to allow 400,000 borrowers to refinance into FHA mortgages is expected to start on Oct. 1, an unnamed HUD spokesperson says the actual implementation date will be much later. HUD, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. have been tasked with spelling out the underwriting terms for the program; but they are expected to follow the traditional regulatory process--meaning that the need for public comments and revisions could postpone the final rule until summer 2009. House Financial Services Committee Chairman Barney Frank, D-Mass., frustrated with talk about delays, says the Mortgage Bankers Association, the American Bankers Association, the HOPE NOW Alliance, Bank of America and Wells Fargo have agreed to implement the program. Additionally, Frank has requested a survey of loan servicers by Hope Now regarding their interest in the program, insisting that legislation would be proposed to spur loan modifications if servicers' actions do not align with their survey responses.