Bristol Redevelopment & Housing Authority

Bristol Redevelopment & Housing Authority

FHA Launches New Payment Supplement Options – Industry News

February 21, 2024

Federal Housing Administration Launches New Option to Help Struggling Borrowers Keep Their Homes

The new offering, called the Payment Supplement, will help borrowers bring their mortgage payments current and avoid foreclosure. FHA will also extend its full suite of loss mitigation options for all borrowers through April 30, 2025.

WASHINGTON – The Federal Housing Administration (FHA) today announced a new loss mitigation home retention option for borrowers with FHA-insured single family forward mortgages who are behind on their mortgage payments. The new offering, called the Payment Supplement, provides mortgage servicers with an additional tool to temporarily reduce a borrower’s monthly mortgage payment by up to 25 percent without modifying the mortgage’s current interest rate. The Payment Supplement is meant to help those borrowers who cannot sufficiently be assisted by existing FHA home retention solutions because the interest rate on their mortgage is lower than current interest rates. It is the latest addition to a successful suite of FHA loss mitigation options that has kept more than 1.6 million struggling borrowers in their homes since the start of this Administration. Read more HERE.