1. Overview of the FHASecure Initiative

Introduction

This topic contains information on FHASecure, including

•	a description of the FHASecure initiative

•	the temporary nature of FHASecure, and

•	improper use of the FHASecure Initiative.

Change Date

May 10, 2009

4155.1 6.E.1.a Description of FHA Secure Initiative

FHASecure is a temporary initiative to permit lenders to refinance delinquent adjustable rate mortgages (ARMs) and/or to offer new subordinate financing where the combined loan-to-value ratio exceeds the applicable FHA loan-to-value ratio and geographical maximum mortgage amount.

4155.1 6.E.1.b Temporary Nature of FHA Secure

Lenders are reminded that the eligibility criteria for delinquent borrowers and new subordinate financing under the FHASecure initiative are temporary and require that the loan application be signed no later than December 31, 2008.

4155.1 6.E.1.c Improper Use of the FHASecure Initiative

The FHASecure Initiative is not to be used to solicit borrowers to cease making timely mortgage payments.