WASHINGTON (10/27/08)—The Credit Union National Association (CUNA) has issued a final rule analysis on the Federal Housing Administration’s (FHA’s) Hope for Homeowners (H4H) Program to refinance up to $300 billion in troubled, subprime mortgages into fixed-rate, FHA-backed loans. The H4H program is voluntary and all lienholders must agree to participate, including any subordinated lienholders who may hold home equity or other similar type loans. The program also allows the subordinated lienholders to share in any future appreciation of the property as a means to encourage them to participate in the program. Under this program, effective for loans originated on or before Jan. 1, 2008, eligible homeowners will be able to refinance their subprime, primary residence home loans. To qualify, the lender or mortgage investor must reduce the loan principal and would receive a guarantee for no more than 90% of the home's current appraised value. In addition, the lender would have to pay a 3% FHA loan origination fee. In exchange for an FHA guarantee on the mortgage, borrowers must share with the FHA the newly created equity and any future appreciation from the resale of the refinanced home. The program became effective as of Oct. 1. For more details, use the resource link below to read CUNA’s complete rule analysis.