Noting that the FHA foreclosure stabilization provisions of a bill passed by Congress Thursday do not become effective until October, the chairman of the House Financial Services Committee is urging mortgage servicers to hold off on foreclosure in applicable cases "so borrowers can take advantage of the program." Rep. Barney Frank, D-Mass., noted that an earlier version of the bill would have made the Federal Housing Administration refinancing program for troubled borrowers available immediately. However, the housing bill that eventually passed both the House and the Senate does not make the FHA foreclosure prevention program effective until Oct. 1.
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