HUD CONTINUES TO PROVIDE IMMEDIATE HELP TO HOMEOWNERS IN TENNESSEE
HUD Secretary to troubled homeowners: Don't wait to seek relief; Visit HUD.gov

KNOXVILLE - Distressed homeowners in Tennessee do not have to wait for the new housing law to take effect on October 1st in order to be eligible for mortgage relief. HUD's Federal Housing Administration (FHA) continues to
provide troubled homeowners with access to safe, affordable mortgage products.

"HUD understands that for many families, time is of the essence. These families should not wait to obtain help when
it may already be available," said HUD Secretary Steve Preston. "Delay could only result in the loss of their home.
We have already helped hundreds of thousands of families nationwide, and we believe there are more Tennessee families that can currently benefit from our refinancing product."

Immediate assistance is available by calling 1 (800) CALL-FHA or visiting www.HUD.gov. There are 48 HUD-approved housing counseling agencies standing by to help homeowners in the state of Tennessee. In addition, homeowners
may also call the HOPE Now Alliance at: 1 (888) HOPE-NOW.

In July, the Bush Administration expanded its flagship mortgage insurance program to assist more homeowners who
are struggling to keep up with their high-cost subprime adjustable rate mortgages. HUD's FHA expanded its
FHASecure refinancing product to insure more mortgages for borrowers who were late on a few payments and/or received a voluntary mortgage principal write-down from their lender.

With this expansion, FHA has helped more than 320,000 families since September 2007 refinance into affordable mortgages and is on pace to help 500,000 American families by the end of this year.

In August 2007, FHA initially modified its refinancing program to help creditworthy homeowners who missed their mortgage payments as a result of the payment shock associated with interest rate resets. FHASecure has further expanded its eligibility criteria to help homeowners who have gone into default as a result of temporary economic setbacks. FHA's eligibility will now help the following categories of troubled homeowners:

1. Borrowers who are delinquent on their adjustable rate mortgages, but who were late on no more than two monthly mortgage payments over the previous twelve months are eligible for the standard 97 percent loan-
   to-value (LTV) FHASecure refinance loan.



2. Borrowers delinquent on their adjustable rate mortgages who were late on three consecutive monthly
   mortgage payments or at three different times over the past twelve months will be eligible for a 90 percent
   LTV ratio FHASecure refinance loan.

FHASecure can help additional borrowers in Tennessee and across the nation access a more viable refinancing
option and will offer lenders an alternative to foreclosing on these individuals. Lenders can already voluntarily write down the outstanding subprime mortgage principal balances to a 97 percent or 90 percent LTV ratio depending on
the borrowers' circumstances. FHA will also encourage lenders to make other arrangements, such as subordinate financing, to "fill the gap" between the existing loan balances and the FHA-insurable loan amount. The refinanced
loan amount backed by the FHA would be based upon a new appraisal, performed by an FHA-approved appraiser.

Below is a list of local HUD-approved housing counseling agencies in Tennessee:

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HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet
and espanol.hud.gov.