THOSE SEEKING FHA MORTGAGE FINANCING ARE URGED TO DEAL DIRECTLY WITH HUD-APPROVED COUNSELING AGENCIES AND LENDERS
Consumers Don't Need to Pay Other Companies to Get FHA Mortgage

RICHMOND - U.S. Housing and Urban Development Field Office Director William P. Miles urged homeowners today to deal directly with HUD-approved counseling agencies and HUD-approved lenders for a Federal Housing Administration (FHA) loan product.

"We've noticed an increase in advertising by companies, which are not HUD-approved counseling agencies or HUD-approved lenders, offering their services for a fee to homeowners seeking a FHA mortgage," said Miles. "We want Virginia consumers to know that there is no need to pay an intermediary to get a FHA mortgage."

Consumers can contact HUD-approved housing counselors or HUD-approved lenders directly for help. To find a
housing counselor in your area, visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 1 (800) 569-4287.
To find a lender, visit www.fhaoutreach.gov/lender/lender.do or call 1 (800) 225-5342

Since expanding its refinance program in September 2007, FHA has helped more distressed homeowners keep their homes by utilizing FHA's safe and affordable mortgage financing. FHA refinancing is on pace to help 500,000 families by the end of this year.

"Thanks to FHA's expanded programs, hundreds of thousands of families now have peace of mind knowing they
have a stable, more affordable mortgage," said Miles. "Today, we are proud to say that FHA has helped more than
400,000 struggling families keep their homes while also creating greater liquidity in the mortgage market."

Since its creation in 1934, FHA has helped more than 35 million families become homeowners. Nationwide, the
number of mortgages insured by FHA was nearly three times higher in the third quarter of calendar year 2008, compared to the same time last year. By requiring full income and employment documentation, FHA products are underwritten to ensure borrowers have the ability to repay the loan. FHA also continues to offer unprecedented
loss mitigation assistance to homeowners. FHA's loss mitigation efforts have helped about 300,000 families keep
their homes over the last three years.

Timeline: Expanding FHA's Refinance Program to Help Families Stay in Their Homes

• August 2007 - President Bush launches a new initiative at HUD's Federal Housing Administration (FHA) called FHASecure to help hundreds of thousands of struggling homeowners - especially low-income families and minorities - avoid foreclosure. This product expanded FHA's ability to offer refinancing to homeowners who
  have good credit histories, but cannot afford their mortgage payments after their teaser rates reset.
  
  
• May 2008 - FHA helps 200,000 families refinance their mortgages since September 2007.
  
  
• July 2008 - FHA expands FHASecure to help homeowners with adjustable rate subprime mortgages who can
  no longer afford their mortgages and missed up to three monthly mortgage payments over the past 12
  months. Rather than go into foreclosure, eligible borrowers can refinance with FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances.
  
  
• August 2008 - FHA helps 300,000 families refinance their mortgages since September 2007.
  
  
• October 2008 - HUD launches the HOPE for Homeowners program to refinance mortgages for eligible
  borrowers who are having difficulty making their payments, but, after a write-down in principal, can afford
  a new loan insured by FHA.
  
  
• October 2008 - FHA helps 400,000 families refinance their mortgages since September 2007.

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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.