Mortgage Servicers

The Federal Housing Administration introduced a new offering to help struggling homeowners avoid foreclosure. The offering, called the Payment Supplement, is a loss mitigation home retention option available to borrowers with FHA-insured single-family mortgages.  Payment Supplement gives mortgage servicers a tool to reduce the borrower’s monthly payment by up to 25% without modifying the rate by using funds from a Partial Claim, enabling the borrower to access up to 30% of the outstanding balance of their mortgage. The claim amount is placed in a junior lien and paid back when the homeowner sells or refinances, or when the mortgage otherwise terminates. “HUD uses every tool in our toolkit to ensure we can help struggling borrowers avoid foreclosure,” said HUD Secretary…