The Federal Housing Administration (FHA) is the world's largest mortgage insurer, insuring more than 34 million properties in its history.
So, the government group knows a thing or two about insurance and insurance claims. To that end, it's published a series of guidelines aimed at mortgage lender, and meant to help U.S. homeowners affected by natural disasters such as this year's Hurricane Sandy.
The rules are meant to help and protect FHA-insured homeowners in FEMA disaster zones.
In its mortgagee letter aptly-titled "Guidance for FHA-Approved Mortgagees Originating and Servicing Mortgages in Presidentially-Declared Major Disaster Areas", the FHA offers a handful of guidelines to mortgage lenders and servicers.
The first -- and most powerful -- guidance is a 90-day foreclosure moratorium on properties within a federally-declared disaster area. This applies to foreclosures-in-process and foreclosures not yet initiated.
Related, the Federal Housing Administration recommends that mortgage servicers consider waiving late charges for homeowners affected by natural disasters.
The 7-page memo also lays out the following :
The Federal Housing Administration also recommends that loan servicers give delinquent borrowers ample time to recover from the effects of a natural disasters, and to ensure that borrowers of FHA-backed loans are treated fairly.
The FHA offers home loans with just 3.5% downpayment and FHA mortgage rates are often lower than comparable conventional ones. If you're buying a home and plan to make a limited downpayment, take a look at FHA mortgage rates.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2016 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)