FHA Cancels Pending Cases, Prepares for New Refinance Program
The Federal Housing Administration said that it will cancel pending case numbers for borrowers who are in the process of refinancing so they will be able to benefit from a lower-cost program that will begin June 11, National Mortgage News reported April 4.
The program, unveiled by President Obama March 6, will reduce fees through what’s known as a “streamline” refinance, which is reserved for FHA borrowers who refinance into another FHA-backed mortgage. The process does not require borrowers to verify income, employment or credit — and it does not require a new appraisal, which means that underwater borrowers can refinance.
Streamline refinances are available only to borrowers who took out loans before June 1, 2009, and have made all of their last 12 mortgage payments. The White House expects the changes to help between 2 and 3 million borrowers refinance.
The FHA said that lenders can immediately begin submitting case number cancellation requests, National Mortgage News reported.