FHA Calls on Lenders to Assist Federal Workers, Contractors Impacted by Shutdown
On October 11, the U.S. Department of Housing and Urban Development (HUD) released an update titled FHA Calls on Lenders to Assist Federal Workers and Contractors Impacted by the Federal Government Shutdown.
FHA CALLS ON LENDERS TO ASSIST FEDERAL WORKERS AND CONTRACTORS IMPACTED BY THE FEDERAL GOVERNMENT SHUTDOWN
WASHINGTON – The Federal Housing Administration (FHA) today called on all approved mortgagees and lenders to be sensitive to the financial hardships faced by borrowers as a result of the shutdown, including those borrowers subject to furlough, layoff, or a reduction in income related to the shutdown.
FHA expects all approved mortgagees and lenders to make every effort to communicate with and assist affected borrowers to the greatest extent possible by:
- extending informal forbearance plans to borrowers facing financial hardship as a result of the shutdown, and
- fully evaluating borrowers for available loss mitigation options to avoid foreclosure whenever possible.
“These dedicated public servants, through no fault of their own, are now forced to find a way to meet their ongoing financial obligations without their usual salaries,” said FHA Commissioner Carol Galante in a letter to FHA-approved lenders and mortgagees. “In many instances these are the same employees who have already lost pay during recent sequestration related furloughs.”
FHA is also strongly encouraging all approved mortgagees and lenders to waive late fees for affected borrowers and to suspend credit reporting on borrowers nationwide who have been affected by the shutdown.
“FHA is working to ensure that the hard won improvement in the housing market is not substantially compromised by the government shutdown and, in particular, that responsible FHA borrowers impacted by the shut-down receive the support they need,” Galante added.
Read FHA Commissioner Galante’s letter to lenders and approved mortgagees HERE.
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s Email List.
To view the online update, please click here.
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