I have no idea who this latest program is looking to help. Why a lender would participate in this program is beyond me. The program still requires the lender to take the loss, the only benefit might be that the lender might take a smaller loss than they would if they foreclosed....transferring the risks to the taxpayer via the FHA. Yet again, another Dead On Arrival plan - at least the Obama administration is keeping a consistent policy, one carried over from Bush.....that of offering destined to fail plans that help nobody.
Scott Dauenhauer CFP, MSFP, AIF