HUD To Announce New Mortgage Sale Guidelines

Following criticism, new reforms will change how private firms can purchase government-backed mortgages

HUD To Announce New Mortgage Sale Guidelines
May 19, 2016

On Tuesday, the Department of Housing and Urban Development (HUD) announced that they will soon be releasing a new set of guidelines for the sale of all mortgages that were once guaranteed by the US government. These new regulations come in response to a number of legislators criticizing the loan sales, saying that they allowed hedge funds and private equity firms to profit without helping borrowers who were in need of some form of financial assistance. The program began in 2010.

HUD spokesperson Cameron French stated that these changes have been in the works for several months and are aimed at helping homeowners who are in financial distress. He also stated that the new guidelines will be announced within the week. These new regulations will not likely affect the next batch of loans scheduled to be auctioned off. The loans contained in this batch are all considered to be extremely delinquent, meaning they have not been paid back for 48 months.

Many expect to see changes to the guidelines that regulate the types of mortgage modifications that these private lenders can provide to borrowers in financial need. The National Consumer Law Center recently released a report that criticized these firms for offering borrowers modifications that only changed the interest on the loans, not the amount of money the homeowner owed. These modifications also often reverted to the original interest after five years, providing only a small, limited-time amount of relief.

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Irene | 05.19.16 @ 15:57
Great info it's always a good idea to keep up with new regulations and guidelines
Elaine | 05.19.16 @ 15:58
Anything to help ease the pressure of money is always a plus. Just hope it actually works for those who truly need the help.
Steffanie | 05.19.16 @ 15:58
IF it makes it easier I am all for it, but I'm not sure it will. I think the government needs to stop regulating everything.
Erin | 05.19.16 @ 15:58
I'm glad they are doing something to regulate this practice. It sounds like it was only providing a stop-gap for the home owners and quite a bit of profit for the companies.
Carla Truett | 05.19.16 @ 16:00
I'm hoping these changes are for the good. It pays to keep on top of things as it seems they change often
Jane | 05.19.16 @ 16:01
This is a much needed change. People deserve to have the amount of their mortgage principal changed if the value of their homes have decreased significantly, due to the prior recession. Home values were irrationally high before the recession hit.
Tina | 05.19.16 @ 16:01
I think this is a good move. It's sad when businesses take advantage of individuals. It seems there are always more protections for businesses than there are for families.
Wanda Langley | 05.19.16 @ 16:33
I am hoping that these changes are for the good of the People who are trying to keep their Homes that are in need of it.
$commenter.renderDisplayableName() | 12.11.16 @ 08:17
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