BRADENTON, Fla. – July 14, 2008 – Homeowners struggling to save their homes from foreclosure might have an easier time getting a helping hand from the Federal Housing Administration starting Monday.

Plans to relax FHASecure guidelines would expand eligibility standards to include borrowers with adjustable rate mortgages who were late on two monthly mortgage payments in the past 12 months, even if they were consecutive. Those who were late on three mortgage payments in 12 months are also eligible for help but they must meet loan-to-value ratios different from those who only missed two payments.

A loan-to-value ratio is the percentage comparison between the unpaid principal balance of the mortgage and the appraised value of the property.

Local lenders hope the changes will help them get more homeowners the refinancing they need in order to keep their homes.

On Tuesday, the Federal Reserve also announced it will issue new rules next week aimed at protecting future homebuyers from dubious lending practices, hoping to prevent a recurrence of the foreclosure crisis.

Fed Chairman Ben Bernanke said rules will be adopted cracking down on a range of lending practices that burned many risky subprime borrowers and helped fuel the housing and credit debacle.

“I’m hoping we see big changes,” said Rob Stettler, branch manager of Wells Fargo Home Mortgage in Bradenton, of FHASecure rules.

Wells Fargo has seen fewer clients looking to refinance, which could mean things are looking up or simply that not enough people know there are plans available to help them.

“Hopefully, things are moving in the right direction,” Stettler said.

During a news conference Tuesday, Department of Housing and Urban Development Secretary Steve Preston estimated the new guidelines will help 100,000 families refinance into “more affordable FHA-insured loans” by the end of the year. Since August 2007, HUD estimates that more than 260,000 homeowners nationwide have refinanced with FHA.

“FHASecure will begin to provide additional assistance to subprime borrowers with adjustable rate mortgages and help to restore liquidity and stability to the markets,” Preston said.

Many lenders have found it is not just those with subprime or adjustable rate mortgages that need help in a faltering economy.

“I think it’s across the board. The exotic mortgages get a lot of publicity, but there are other people who are in trouble whose loans were rather vanilla,” said David Freed, president of Aim Mortgage of Bradenton.

Much like in its previous incarnation, FHASecure is focusing specifically on assisting people in danger of losing their homes to foreclosure, not investors.

“For investors, foreclosures are going to be something that hurts them financially and hurts their credit, but it’s not going to put them out on the street,” Freed said.

Freed, like many mortgage brokers and lenders, is cautiously optimistic that the new plan will provide the relief needed but had difficulties with it before and are waiting to pass judgment on the new plan.

The original incarnation of FHASecure required homeowners to jump through so many hoops, many no longer qualified or were in pre-foreclosure before the paperwork could be completed.

“I can tell you FHASecure was a total disaster,” Freed said.

Stettler has seen an improvement in the length of time it takes to get the loans processed even though the changes have yet to take place.

“It’s not taking too long to get them through,” Stettler said.

On average, it takes about 30 days to get an FHASecure loan through right now, so Stettler just hopes the new guidelines will allow him and his staff to help more people keep their homes.

“Hopefully things are moving in the right direction. We’re aggressively trying to do every loan we can do to get them into better loans,” Stettler said.

We are looking for it, this can make the change her' We feel that the change is coming

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