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HUD/OH RIN: 2502-AJ59 Publication ID: Spring 2022 
Title: 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 and other eligible costs 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.


Agency: Department of Housing and Urban Development(HUD)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Yes  Unfunded Mandates: No 
CFR Citation: 24 CFR 203   
Legal Authority: 12 U.S.C. 1707    12 U.S.C. 1709 and 1710    12 U.S.C. 1715b    12 U.S.C. 1715z-16    12 U.S.C. 1715u, and 1715z-21    15 U.S.C. 1639c    42 U.S.C. 3535(d)   
Legal Deadline:  None
Action Date FR Cite
NPRM  04/01/2022  87 FR 19037   
Final Action  03/00/2023 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Elissa Saunders
Acting Director, Office of Single Family Asset Management
Department of Housing and Urban Development
Office of Housing
451 Seventh Street SW,
Washington, DC 20410
Phone:202 708-2121