Agencies Release White Paper on Future of Foreclosure Prevention

ABA Banking Journal | July 25, 2016     In a white paper released today, the Department of the Treasury, the Department of Housing and Urban Development and the Federal Housing Finance Agency outlined five principles to guide the creation of future foreclosure prevention programs. With many of the crisis-era homeowner assistance programs winding down at the end of 2016, the agencies said that accessibility, affordability, sustainability transparency and accountability should guide the development of new loss mitigation programs and encouraged investors and servicers to collaborate on developing and implementing new initiatives.

“With the retirement of [the Making Home Affordable program], the industry will shoulder more responsibility for assisting struggling homeowners through proprietary modifications and other loss mitigation programs,” the white paper said. “One of the important things we have learned from the crisis-era efforts is that a collaborative process results in better outcomes for all stakeholders. That lesson should not be forgotten as the industry takes a more prominent role in defining the future of loss mitigation.”  Read more here.