Making Home Affordable Modification Ruling
A new announcement outlining the Board of Governors of the Federal Reserve System interim Final Rule for Making Home Affordable Modification Ruling.
Offices represented:
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Office of Thrift Supervision
Released June 26, 2009
Agencies Issue Interim Final Rule for Mortgage Loans Modified Under the Making Home Affordable Program. Loan modification San Diego homeowners would be affected by the new ruling.
The federal bank and thrift regulatory agencies today invited public comment on an interim final rule that provides that mortgage loans modified under the U.S. Department of the Treasury’s Making Home Affordable Program (MHAP)will retain the risk weight applicable before modification. On March 4, 2009, the Treasury announced guidelines under the MHAP to promote sustainable loan modifications for homeowners at risk of losing their homes to foreclosure. The interim final rule would provide a common interagency capital treatment for mortgage loans modified under MHAP. For example, mortgage loans risk weighted at 50 percent prior to modification would continue to be risk weighted at 50 percent after modification provided they continue to meet other applicable criteria.
The interim final rule, by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision, will take effect upon publication in the Federal Register, which is expected shortly. Public comments must be submitted within 30 days after publication in the Federal Register.
The Board Of Governor’s is allowing any public comments to be submitted within thirty days from the date of publication. The pdf that details the new ruling can be found by clicking here.
The new ruling applies to Fannie Mae and Freddie Mac insured loans. If you have a loan that is owned by one of these entities and are in need of a loan modification San Diego program these new rulings will provide you with a guideline as to what options your lender has available to you under the new Home Affordable Modification program. It would be advisable to review this final ruling before you attempt to modify your home mortgage loan.