HUD's Jackson cites administration'sforeclosure-prevention efforts.

The Bush administration has already implemented all of its administrative options to help, but action by Congress will assist many more struggling homeowners as well as would-be homebuyers, according to HUD Secretary Alphonso Jackson.

Jackson highlighted for attendees at the Mortgage Bankers Association's

"The president wants FHA to return to its original role, which was to help bring stability to the real estate market. This will help break the cycle of foreclosure and price depreciation, and bring much-needed liquidity to a mortgage market that has quickly become constricted," said Jackson. "With new legislation, refis and other FHA products, we will be able to help almost 800,000 people next year buy and keep new homes."

Jackson noted that the administration's FHA modernization legislative proposal would lower down-payment requirements, allow FHA to insure loans in higher-cost areas and give FHA more pricing flexibility.

The House has overwhelmingly approved a bipartisan FHA modernization bill, while similar legislation in the Senate has cleared the Senate Banking Committee and, it is hoped, will be acted upon soon (see Mortgage Banking, November 2007, p. 8).

At the end of August, President Bush unveiled HUD's FHASecure program. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset--but who are now delinquent--to qualify for refinancing.

Furthermore, Jackson noted that HUD has announced more than $44 million in new grants to more than 400 state and local housing counseling efforts, and the department is seeking even more funding for counseling.

"Consumers must be educated. Often, homeowners don't carefully read their contracts; some don't read them at all. The key is to be able to read and understand the fine print, and also to know when to ask for help," said Jackson. "The president wants even more money for housing counseling, asking for some $50 million in his new budget."

Jackson took a special opportunity to praise MBA for setting up its Foreclosure Prevention Resource Center.

Announced in October, the Foreclosure Prevention site--part of MBA's popular consumer education site, HomeLoanLearningCenter.com--is part of MBA's outreach to advise those who may face trouble making their loan payment to contact their loan servicer, the company to which they make payments each month, as soon as possible to determine if an alternative to foreclosure may exist based on the borrower's financial and employment status.

The bilingual site includes a listing of major loan servicers and their contact information, as well as a guide to the "Things to Know When You Contact Your Lender" so that borrowers having difficulty making mortgage payments can begin an informed dialogue with their servicer about potential solutions.

"I want to applaud MBA for setting up the Foreclosure Prevention Resource Center to provide advice and outreach," Jackson told convention attendees. "This is an important addition to help homeowners."