Washington Report

Advocacy Updates from Washington D.C.

NAR Writes to HUD in Support of New 40-year Mortgage Modification

NAR provided a comment to HUD in response to its request for input on its proposal to allow the FHA to modify mortgages of distressed homeowners with a term of up to 40 years.

REALTORS believe, and NAR's Responsible Lending Policy outlines, that a standard for determining a borrower’s ability to repay must be flexible to accommodate borrowers with unique circumstances. Allowing the FHA to modify the mortgages of distressed homeowners to a monthly payment that they can meet with a moderately longer amortization helps to support both homeownership and stability of the market.