Reuters had an interesting story about the success (or rather lack thereof) of the FHASecure program so far. Here is an excerpt:
LAS VEGAS, Feb 5 (Reuters) – A federal plan to help homeowners facing foreclosure must be expanded after drawing a tepid response from borrowers since its unveiling in August, panelists at a bond organization meeting said on Tuesday.
A study circulated within the American Securitization Forum last month proposed the Federal Housing Administration broaden its FHA Secure loan refinance program to stem more foreclosures. The program should allow borrowers delinquent for any reason to refinance into an FHA loan, versus the narrow requirement that borrowers face a higher interest rate.
The ASF proposal comes amid signs that falling home prices will continue to push foreclosures higher. FHA Secure thus far has refinanced about 1,000 borrowers, making it a “failure” so far, Rod Dubitsky, a managing director at Credit Suisse, said on an ASF panel here.