SALT LAKE CITY, UTAH, September 28, 2007 (Primary Residential Mortgage, Inc.) – As the subprime mortgage meltdown continues to plague the housing market, congress is working feverishly to pass the FHA Modernization Act of 2007.
The Center for Responsible Lending recently determined that as many as 2.2 million sub-prime mortgage loans made in recent years will end in foreclosure, costing homeowners as much as 164 billion dollars.
Congress voted to adopting reforms to the Federal Housing Administration that many proponents believe will help hundreds of thousands of struggling homeowners avoid foreclosure in the coming years.
The House overwhelmingly approved a bill to modernize the federally insured loan program that provides affordable fixed rate mortgage loans, and aid first-time home buyers. The Senate Banking Committee approved a similar reform bill the following day that will likely serve as the template for a final version that lawmakers will send to the White House.
“This legislation is urgently needed to help sub-prime mortgage borrowers avoid foreclosure by refinancing into federally insured home loans” said David Zitting, President and CEO, Primary Residential Mortgage, Inc. “We really haven’t a moment to lose; this sub-prime mortgage meltdown is significantly affecting our economy”
As recently as 2003, Primary Residential Mortgage, Inc. closed 5,721 FHA loans, and the company expects volume to surge again as investors continue to tighten guidelines and eliminate other comparable products. As options for first-time home buyers and the credit-impaired decrease, borrowers are once again turning to FHA hoping to find relief. FHA loans offer several benefits, including low down payments, low closing costs, and easy credit qualifying.
The Federal Housing Administration announced the creation of a program to help struggling homeowners with good credit histories avoid foreclosure. The program could help up to 240,000 households across the country. The “FHA Secure” plan allows homeowners who have missed a payment after adjustable interest rates have reset to refinance their mortgage with the FHA at a lower rate.
“Primary Residential Mortgage, Inc. is in full support of the FHA Secure initiative” said Zitting. “We’re confident this is a step in the right direction not just for the mortgage community, but more importantly, for borrowers”
ABOUT PRIMARY RESIDENTIAL MORTGAGE, INC.
Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in approximately 200 Branches in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately held, debt-free company that focuses primarily on traditional loan products.