Regulators Issue Final Rule For MHA Modifications

Posted by Orb Staff on June 29, 2009 No Comments
Categories : Mortgage Servicing

deral bank and thrift regulatory agencies have called for public comment on an [link=http://federalreserve.gov/newsevents/press/bcreg/bcreg20090626a1.pdf][u]interim final rule[/u][/link] that provides that mortgage loans modified under the U.S. Department of the Treasury's Making Home Affordable (MHA) program will retain the risk weight applicable before modification. The interim final rule would provide a common interagency capital treatment for mortgage loans modified under MHA. For example, mortgage loans risk weighted at 50% prior to modification would continue to be risk weighted at 50% after modification, provided they continue to meet other applicable criteria. The interim final rule by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp. and Office of Thrift Supervision will take effect upon publication in the Federal Register, which is expected shortly. Public comments must be submitted within 30 days after publication in the Federal Register. SOURCE: Federal

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