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FHA Wanted to Provide ‘Breathing Room’ to Borrowers

Montgomery

The Hon. Brian Montgomery

Commissioner Brian D. Montgomery, Assistant Secretary for Housing–Federal Housing Commissioner for the Department of Housing and Urban Development (HUD) spoke exclusively with Five Star Global’s President and CEO Ed Delgado regarding the current housing environment amidst the outbreak of COVID-19. 

“The FHA is open for business,” Montgomery said. 

Delgado's conversation with Commissioner Montgomery, including discussions on changes to the CWCOT program, technological changes, and more, will be available at 1 p.m. CDT on Thursday, April 23.

Commissioner Montgomery said in the interview that while the Administration faced challenges early on in regards to the remote-working environment, Montgomery said the FHA is processing loans and getting back to normal operations. 

One of the biggest steps taken by the FHA and the Department of Housing and Urban Development (HUD), was the announcement of a foreclosure and eviction moratorium of at least 60 days. 

“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” said HUD Secretary Dr. Benjamin Carson following the March announcement. “The health and safety of the American people are of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”

HUD later announced that borrowers with FHA-insured loans, if impacted by COVID-19, can have their mortgage payments deferred or reduced for up to six months, and for servicers to provide an additional six months of forbearance is requested by the homeowners. 

Montgomery said the actions taken by HUD and the FHA since April 1 are “beyond” normal protocols. 

“We wanted to make sure we gave homeowners some breathing room. They are going through a lot of the concerns about their employment situation, things of that nature, making their mortgage payments, other financial obligations,” Commissioner Montgomery said. “We wanted to be able to do something big that gave them some breathing room as they face the challenges ahead.”

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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