HUD announced on Thursday that is making the most significant improvements to date for its Distressed Asset Stabilization Program that include requiring purchasers of the delinquent loans to offer principal reduction to qualified borrowers. The enhancements announced Thursday also include prohibiting investors from abandoning low-value properties and offering greater opportunities for non-profits and local governments to participate in DASP.
The loans sold through DASP are an average of 29 months delinquent, according to FHA. Acting FHA commissioner Ed Golding said, quote, While thousands of homeowners avoided foreclosure through this note sales program, we continue to explore new ways to help these families and to offer more opportunities for public-minded organizations to have a seat at the table. Close quote
Freddie Mac has obtained three new insurance policies under its Agency Credit Insurance Structure program, representing the largest aggregate transaction to date, and a new milestone reached. The new policies provide a combined maximum limit of approximately 788 million dollars of losses on single-family loans and transfer much of the remaining credit risk associated with three of the Structured Agency Credit Risk debt notes issued this year. Freddie Mac has now placed 5 billion dollars in insurance coverage through 20 ACIS transactions since the program's inception in 2013.