Director, Office of Single Family Asset Management

2502-AJ59 202104 Unified Agenda of Federal Regulatory and Deregulatory Actions 2502 Office of Housing OH 2500 Department of Housing and Urban Development HUD Increased 40-year Term for Loan Modifications (FR-6263)

This would amend the current regulation at 24 CFR 203.616 to permit the modification of an FHA-insured mortgage for a maximum term not to exceed 480 months, or 40 years. The current regulation allows a mortgagee to modify a loan to cure a default by recasting the total unpaid amount due for a term not exceeding 360 months, or 30 years. Increasing the term length of a modified loan would provide borrowers with a deeper reduction to their monthly mortgage payments as the outstanding principal would be spread over a longer time frame. This change would provide more FHA borrowers with the ability to retain their homes after default, including borrowers who have exhausted their partial claim allocation, as well as provide more affordable housing payments. This change would also align FHA with modifications available to borrowers with mortgages backed by Fannie Mae or Freddie Mac, which currently provide a 40-year loan modification option.

]]> Other Significant First Time Published in The Unified Agenda Proposed Rule Stage Undetermined No 24 CFR 203 12 U.S.C. 1707, 1709, 1710, 1715b, 1715z-16, 1715u, and 1715z-21 15 U.S.C. 1639c 42 U.S.C. 3535(d) No NPRM 08/00/2021 No No None No No No No Elissa Saunders Director, Office of Single Family Asset Management 2502 Office of Housing OH 202 402-2378 100 South Charles Street , 11th Floor, Baltimore MD 21201