Wolters Kluwer Helps Lenders Comply With FHA H4H Docs

In response to federal regulators encouraging lenders and servicers to participate in the Federal Housing Administration's HOPE for Homeowners program (H4H), Wolters Kluwer Financial Services has begun to develop a suite of solutions to help financial institutions comply with the program's requirements. The H4H program was created by Congress to help borrowers at risk of default and foreclosure refinance into more affordable and sustainable loans. For borrowers who refinance under H4H, lenders are required to write down the mortgage to the Department of Housing and Urban Development-provided maximum loan-to-value ratio based upon the home's new appraised value. In many instances, lenders will determine that such a reduction in principal allows them to avoid a costly foreclosure, while helping borrowers stay in their homes with an FHA-backed mortgage. Wolters Kluwer Financial Services says it is developing the documents necessary for lenders and servicers to comply with the H4H program's new consumer disclosures and closing package requirements. The documents will be available in electronic or print formats and through the company's document preparation platform. The documents are expected to be available by the end of 2008.