HUD’s Loss Mitigation Program
Mortgagee Letter 2000-05, pg. 21; 2008-21, pg. 2 Must result in a fixed interest rate. Must fully reinstate the loan. Reduce the Note Rate to the current Market Rate. Re-amortize the total unpaid amount due over a 360 month period. Maximum allowable rate increase is 50 basis points above the current Freddie Mac Weekly Primary Mortgage Market Survey
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