FHA adds 40-Year Mortgage Modification Option

The FHA announced that it is adding a new, 40-year modification option for mortgage servicers to use in conjunction with its partial claim option to assist additional borrowers who are behind on their mortgage payments for FHA Title II forward mortgages. This new loss mitigation home retention option is designed to help those borrowers who cannot achieve a minimum targeted 25 percent reduction in the principal and interest portion of their mortgage payment through FHA’s existing 30-year mortgage modification with a partial claim.