Originating The Hope for Homeowners Mortgage

During underwriting of the loan, the lender will calculate the future appreciation interest amount or upfront payment for each subordinate lien holder in accordance with instructions provided by FHA.

At settlement, subordinate lien holders who choose the future appreciation share option will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share.

Following funding of the loan the lender will record – in addition to the typical security instrument and note for the first mortgage – a shared equity note and mortgage (SEM) and a shared appreciation note and mortgage (SAM). These mortgages will be serviced by FHA.

The lender will also submit the new mortgage for insurance to FHA, certifying that it has been originated, underwritten and closed in accordance with the Hope For Homeowners program guidelines.

People also read:

• How The Hope for Homeowners Works

• The Hope for Homeowners Cost-Benefit Analysis

• Negotiations Between Borrowers and Lien Holders

• Originating an The Hope for Homeowners Mortgage

• Fulfilling The Hope for Homeowners Mortgage Obligations

By HUD