The Federal Housing Finance Agency (FHFA) on Wednesday announced a program that would offer $600 in mortgage relief to people who qualify for a mortgage modification and whose mortgages were underwater, according to a press release.
The program is available to those who are eligible and have had their mortgages modified.
The Federal Housing Administration (FHGA) announced the program, dubbed the AT&t Access Program, which would allow homeowners to receive up to $600 a month in loan modifications, as well as an additional $600 to $1,000 for utility assistance.
This is the first program in the United States to offer free mortgage modifications to eligible borrowers.
The FHFA’s mortgage relief is a direct payment to the borrower to facilitate modifications that can reduce the amount of their mortgage payment.
The program will allow the eligible borrower to receive the full amount of the modification by using the Federal Direct Loan (FDL), which has a maximum interest rate of 5.25 percent.
The mortgage modification will be based on a borrower’s credit score and other factors that determine the amount and type of modifications they may be eligible for.
The FHGA said the program is a cost-effective way for borrowers to qualify for additional mortgage relief.
“The FHA is committed to helping homeowners who have been impacted by mortgage losses.
By offering these affordable mortgage modifications, the FHA will make it easier for those in need to keep their homes and help the economy grow,” said Brian Leung, Acting FHCA Acting Administrator.
AT&T has been a leading lender of mortgage modifications since the Fannie Mae and Freddie Mac bailouts of the late 1990s, when it created a program to allow consumers to refinance their mortgages.
A FHA spokesperson told the news outlet that the FHSA is committed “to helping the country recover from the financial crisis, which resulted in the worst financial crisis since the Great Depression.”
The FHS website has more information about the AT &t Access program.