The Administration had previously announced a program to be implemented by the fall that would allow FHA refinancing of some "underwater" borrowers.
A March outline of this expected $14 Billion program is HERE.
The new FHA loan must have a balance less than the current value of the home, and total mortgage debt for the borrower after the refinancing, including both first and any other mortgages, cannot be greater than 115 percent of the current value of the home – giving homeowners a path to regain equity in their homes and an affordable monthly payment.
On July 14th it appears HERE that OMB cleared a Notice submitted by HUD to implement use of FHA loans to refinance (some) underwater borrowers.
I don't know if there is a required congressional notification period that plays out for Notices, but with the Fall beginning in less than 2 months it won't be long before this potential $14 Billion new HAMP/TARP program kicks in.
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