MBA Statement on HUD’s Final Rule to Offer Standalone 40-Year FHA Loan Modifications

March 8, 2023 FHA Multifamily MBA Research Press Release


Adam DeSanctis

(202) 557-2727

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WASHINGTON, D.C. (March 8, 2023) — MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Department of Housing and Urban Development’s (HUD) final rule to increase the maximum allowable term for Federal Housing Administration (FHA)-insured loan modifications from 360 months to 480 months:

“This additional tool will allow mortgage servicers to help struggling FHA borrowers stay in their homes through a more affordable and sustainable mortgage payment.

“Adding the 40-year loan modification to FHA’s loss mitigation toolkit creates better alignment across the government and with Fannie Mae and Freddie Mac, a long-standing MBA priority that we most recently recommended in our new white paper on the future of loss mitigation. Better alignment will improve consumer experience and lead to consistency and simplicity when addressing adverse market conditions, national emergencies, and natural disasters.

“MBA appreciates FHA’s engagement with mortgage servicers and other industry stakeholders on this issue – especially from the onset of the pandemic through the upcoming end to the national emergency. We will continue to work with FHA and Ginnie Mae to ensure effective solutions and favorable outcomes for distressed borrowers, while also protecting the Mutual Mortgage Insurance Fund and ensuring secondary market certainty.”