The Wall Street Journal writes of a discussion with Rosengren, the Boston Fed governor, who indicated that many of the sub prime holders had the ability to refi through the FHA. He goes on to note that 55% of the sub prime holders never missed a payment and had some euqity in their homes with reasonable FICO scores and were therefore good candidates for a FHA refi. The article goes on to say that amounts to 1.2 million loans that can be refinanced to lower risk.
What is amazing to me is that the average interest rate on a fixed rate two year loan was 8%. I looked on the net for a comprehensive directory of banks that provide FHA insured loans and couldnt find a single source. This makes it very hard to alert people to the possibilitiy of reducing risk or getting a more suited mortgage for their home. The HUD www.hud.gov/offices/hsg/sfh/insured.cfm site offers some help, but didnt make it easy for consumers to find a bank.
If anyone has any information on DHA refinancing opportunities please share here
Thanks for reading