|
NEWS RELEASE
Nov. 19, 2008
ABA Media Contact: Jim Eberle
(202) 663-5477
E-mail: jeberle@aba.com
ABA STATEMENT ON HUD’S CHANGES TO HOPE FOR HOMEOWNERS PROGRAM
By Robert R. Davis, executive vice president for mortgage finance, risk management and public policy
“Secretary Preston’s announcement of key changes to the Hope for Homeowners Program is welcome and needed. Unprecedented numbers of homeowners are facing serious threats to their ability to stay in their homes. The Hope for Homeowners program can be an important tool to assist many of these borrowers, but some of the program’s initial restrictions and requirements were inhibiting lenders’ and borrowers’ ability to access the program.
“These changes, including increasing the loan to value ratio, extending the term to 40 years, and allowing for upfront payments to subordinate lien holders, are all improvements which should make the program more accessible and attractive. The Hope for Homeowners program is very new, and is still evolving. Both HUD and the Congress, which authorized these changes, are to be commended for acting quickly to address borrower and industry concerns and to make these improvements to the program in such a timely manner.”
The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.3 trillion in assets and employ over 2 million men and women.
# # #
| 
