The U.S. Department of the Treasury issued a press release on July 25, 2016 regarding the publication of a joint white paper by the U.S. Department of the Treasury, the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Finance Agency (FHFA). The joint white paper is titled Guiding Principles for the Future of Loss Mitigation and is designed to serve as a guide for future loss mitigation programs.
The guidance in the white paper is based on past lessons learned from the government’s crisis-era implementation of housing foreclosure prevention and loss mitigation recovery programs. The white paper features five principles that the three agencies believe were essential to the success of the government’s programs and that should provide the foundation for any future loss mitigation programs. The guiding principles are described in the white paper as follows:
- Accessibility: Ensuring that there is a simple process in place for homeowners to seek mortgage assistance and that as many homeowners as possible are able to easily obtain the needed and appropriate level of assistance.
- Affordability: Providing homeowners with meaningful payment relief that addresses the needs of the homeowner, the servicer, and the investor, to support long-term performance.
- Sustainability: Offering solutions designed to resolve the delinquency and be effective long-term for the homeowner, the servicer and the investor.
- Transparency: Ensuring that the process to obtain assistance, and the terms of that assistance, are as clear and understandable as possible to homeowners, and that information about options and their utilization is available to the appropriate parties.
- Accountability: Ensuring that there is an appropriate level of oversight of the process to obtain mortgage assistance for the protection of all parties.
For additional information, refer to the white paper.