Info Scarce on FHA Underwater Refi

According to FHA Commissioner David Stevens, there are 23 lenders participating in the FHA Short Refinance Program. Finding out if your lender is one of them can be a challenge.

In fact, getting any information on the program, which is designed to enable underwater homeowners to reduce their mortgage debt and refinance their loan, can be difficult. The web site of HUD, FHA’s parent agency, doesn’t openly promote the program, nor does it offer any information or links to it under its foreclosure avoidance or refinancing sections.

At least some House Republicans are looking to shut down the young program, saying it’s been ineffective and a waste of taxpayer money. In defending the initiative Wednesday, Commissioner Stevens told a House Financial Services subcommittee that the program is still gearing up, with operating arrangements still being developed.