Financial Institution Resources
Many homeowners face significant payment shock when their mortgages reset to higher interest rates or begin to amortize principal over the upcoming months. Current market conditions indicate that many of these borrowers will not be able to refinance their loans and will become at risk for default and foreclosure. The federal financial regulatory agencies implemented the Statement on Working with Mortgage Borrowers and the Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages to encourage lenders and servicers to take a systemic approach to addressing mortgage loans for owner occupied homes where the borrowers are current, but cannot afford their payments after their loans reset. In addition, the following written guidance and articles may be helpful.