Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Federal Housing Administration (FHA) Short Refinance

Administering Agency/Entity Department of the Treasury and Department of Housing and Urban Development
Short Description Enables homeowners whose mortgages exceed the value of their homes to refinance into more affordable mortgages. Borrowers who are current on their mortgage can qualify for an Short Refinance loan from the Federal Housing Administration (FHA), provided that the lender or investor writes off the unpaid principal balance of the original first lien mortgage by at least 10 percent.
Primary Purpose Emergency assistance to housing market or current homeowner
Type of Housing Supported Homeownership
Type of Assistance Insured loan
Fiscal Year 2010 Obligations $8,120,000,000; Treasury entered into a letter of credit facility to fund up to $8 billion of losses, if any, associated with providing FHA Short Refinance loans originated on or before December 31, 2014. Actual payments made in fiscal year 2010 were $3 million. No loans were refinanced under this program in fiscal year 2010; payments were used to maintain the letter of credit.

(Return to main page)

(Return to program listing)