- LEARNING CENTER
In August 2010, FHA released guidance for implementation of the FHA Refinance of Borrowers in Negative Equity Positions Program through Mortgagee Letter 2010-23. This program allows borrowers who are current on a negative equity mortgage to restructure their debt and refinance into an FHA-insured first lien loan. To facilitate this refinance opportunity, Treasury, as announced in Supplemental Directive (SD) 10-08 and made operational in SD 10-12, will provide incentives when there is partial or full extinguishment of second liens associated with an FHA refinance. Treasury has designated Bank of New York Mellon (BNYM) as incentives processor for FHA2LP.
FHA2LP expired on 12/31/2013.
Making Home Affordable Handbook v5.1
Chapter VII of the MHA Handbook provides guidance to servicers for adoption and implementation of FHA2LP.
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