As reported in DSNews, the Federal Housing Administration (FHA) currently offers a number of home retention options to qualified homeowners who are in default of their mortgage obligations. These include the COVID-19 Advance Loan Modification, COVID-19 Recovery Standalone Partial Claim and COVID-19 Recovery Modification, to name a few.
The FHA has published a proposed rule in the Federal Register which, when finalized, will give the FHA the ability to add a permanent 40-year term to its loss mitigation options.
It would be used in conjunction with its partial claim option to assist borrowers in home retention. As with any loss mitigation option, a borrower must go through a review process and qualify for this or any other program. Ever since the foreclosure moratoriums have been lifted across the United States, services, investors and the government have sought ways to assist borrowers, especially those with a COVID-19 hardship, with ways to retain their home despite being in default.
This appears to be another tool in the FHA tool belt. Counsel for servicers and investors practicing in end-to-end default services must be aware of all programs available to borrowers in an effort to assist clients in undergoing and completing an efficient, proper review for home retention options.
 https://dsnews.com/daily-dose/04-18-2022’fha-40-year-mortgage-mod, FHA Finalizes Details on 40 Year Mortgage Mod, Eric. C. Peck