FOR IMMEDIATE RELEASE
Elise Brooks (202) 589-2427
Joint Statement from Steve Bartlett and John Dalton on HUD's Improvements to Hope for Homeowners
Washington, D.C.—November 19, 2008—The Financial Services Roundtable and The Housing Policy Council (HPC) applaud U.S. Housing and Urban Development (HUD) Secretary Steve Preston and the HOPE for Homeowners (H4H) Board of Directors for making vital changes to the H4H program, making it easier for distressed homeowners to refinance into more affordable, government-back mortgages. This is a positive step that addresses a number of the recommendations The HPC recently made to HUD. Additionally these changes will help more homeowners and make it more useful for servicers.
The modifications will reduce program costs for consumers and lenders alike while also expanding eligibility by driving down the borrower's monthly mortgage payments.
Specifically, HUD is making the H4H program more useful by:
n Making more borrowers eligible, by increasing the loan-to-value ratio to 96.5%
- Simplifying the program and enabling more borrowers to qualify by increasing the debt-to-income ratio (DTI) and ending trial mod requirements
- Creating more affordable loans by increasing the loan term to 40 years
- Simplifying the program by allowing payment to second lien holders
We support HUD’s efforts. This will be a continuing process and we encourage HUD to remain open to additional suggestions on Hope for Homeowners and to take other steps such as continuing the FHA Secure program which also helps at-risk homeowners
The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.
The Roundtable's Housing Policy Council is made up of twenty-four companies that are among the nation's leaders in mortgage finance. Member companies originate sixty-five percent of the mortgages for American home buyers. Member companies participate in the Council through the senior mortgage executive in their company.
The Roundtable and the Housing Policy Council have partnered with other industry leaders to form HOPE NOW. HOPE NOW is an alliance between counselors, mortgage market participants, and mortgage servicers to create a unified, coordinated plan to reach and help as many homeowners as possible.
Roundtable member companies provide fuel for America's economic engine, accounting directly for $66.1 trillion in managed assets, $1.1 trillion in revenue, and 2.5 million jobs.
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