“Among the most tangible moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates.
So if I read this correctly. They are modifiying underwriting guidlines to include people that have fallen behind on payments. In other words willing to lend money to people with poor credit on an asset that is depreciating in value with little or no equity at very low rates. Not sure that is a great idea.
Does this appy to those who are upside down in their home?
