Tag Archives: CalHFA

Bank of America has agreed to participate in Keep Your Home California's principal reduction program, the California Housing Finance Agency announced Wednesday. Principal write-downs offered under the state-run program are part of a $2 billion, federally funded effort to help hard-hit families remain in their homes and ease the California foreclosure crisis. Bank of America has been engaged in a pilot of the principal reduction program since February, and is now moving into full participation.

The California Housing Finance Agency said Wednesday that 20 mortgage servicing companies are now participating in the state's ""Keep Your Home California"" program to help families avoid foreclosure. The $2 billion program is funded with federal dollars from the U.S. Treasury's Hardest-Hit Fund. All of the six largest servicing companies in California are participating in at least one of the program initiatives, with one taking part in the principal reduction effort.

The California Housing Finance Agency (CalHFA) has partnered with the Federal Housing Administration (FHA) to offer a fixed rate, 30-year FHA-insured mortgage to low- and moderate- income California families who purchase their first home. Benefits include below-market interest rates and affordable down payments. CalHFA says many first-time homebuyers cannot meet the loan requirements of conventional lenders and its new program will help open the door to homeownership for California families.