WASHINGTON — The Obama Administration announced Thursday that adjustments will be made to the Federal Housing Administration (FHA), requiring services to extend the forbearance period for unemployed homeowners from 3 months to 12 months, according to the U.S. Department of Housing and Urban Development.
Expected to become a standard for the mortgage industry, these adjustments will allot unemployed homeowners more time to find employment while keeping their homes.
Forbearance will also be extended to severely delinquent borrowers.
The adjustment to the FHA will work in concert with other successful initiatives framed by the Administration: the Hard Hit Fund and the Emergency Homeowner Loan Program (EHLP). The FHA provides aid to 18 states and the District of Columbia, implementing programs to avoid homeowners from foreclosure. The EHLP, which compliments the Hard Hit Fund by serving the remaining states and Puerto Rico, assists homeowners who experience reduction in income and face possibly foreclosure due to involuntary underemployment.