New assistance for servicemembers and veterans and lower FHA refinancing fees

By: Maura Collins

President Obama recently announced new housing relief for servicemembers and veterans, including those wrongfully foreclosed upon or denied a lower interest rate on their mortgages. Under an agreement with the federal government, several major mortgage servicers pledge to review servicemember foreclosures since 2006 and compensate any who were wrongly foreclosed upon as well as several other steps designed to provide financial relief in certain circumstances.

The same announcement stated, “FHA will cut its fees for refinancing loans already insured by the FHA. An estimated 2-3 million borrowers could be eligible for this savings, providing the typical FHA borrower with the opportunity to save about a thousand dollars a year through refinancing than they could have under today’s fee structure.”

More details on these programs is available online.