Program Aims to Stem Foreclosures

St. Cloud Times (Minn.) (10/01/08); Johnsen, Britt
The Hope for Homeowners initiative took effect Oct. 1, allowing borrowers who are struggling to make their mortgage payments to refinance into new 30-year, fixed loans worth up to 90 percent of current property value. The federal government approved the program in July and believes it can prevent 400,000 households from losing their homes to foreclosure over the next three years. The national effort is open to borrowers who have loans that were originated on or before Jan. 1, 2008, have a mortgage debt-to-income ratio of at least 31 percent, have only one home and have not missed a payment intentionally. The Federal Housing Administration will insure up to $300 billion in loans.