fha secure rate reduction plan, fha secure

So many homeowners are being slammed by rising interest rates that the number of defaults on mortgage payments is skyrocketing. The inability of tens of thousands of homeowners to keep up with their payments is becoming a crisis, with millions of people living under the threat of becoming homeless. However, there is some limited relief in sight because of the FHA secure rate reduction plan that just went through the House of Representatives. Authored by Representative Barney Frank, this plan has the Federal Housing Administration offer guarantees on up to 300 million dollars worth of FHA refinance money to qualified homeowners. The gist of the FHA refinance plan is that it gives homeowners the opportunity to have the principal on their loan reduced and then the loan would be restructured into a 30-year, fixed-rate mortgage. The plan is voluntary for banks and home loan lenders, but it is hoped that it will reduce, at least somewhat, the flood of mortgage defaults at only a small cost to the government. In my opinion, the FHA secure rate reduction plan is not really adequate to address the nation's mortgage problems, but an FHA refinance is better than nothing, I suppose, so I am in favor of the FHA secure rate reduction plan.