FHA Secure Program Helps a Whopping 266 Borrowers

According to government data released today the FHA secure program released by President George W. Bush in August has helped just 266 borrowers since it’s creation.

The program was designed to help higher risked borrowers get better loan terms by refinancing from their adjustable rate mortgages into a fixed rate FHA loan. Obviously targeted at the more than 1.8 million borrowers that could face mortgage rate spikes by the end of the year according to the Federal Reserve Board.

Brian Montgomery, the FHA Director, stated that the program was off to a slow start but is overcoming bureaucratic challenges and is gaining momentum even as the national mortgage crisis worsens.  Officials at the US department of Housing and Urban Development also noted that many of the 3,200 delinquent borrowers that have applied for this program since September that have not received their approval may yet be accepted.

Industry professionals have doubts whether or not this program will work at all. With the low FHA loan limits now in place its hard to fit borrowers into this program in places that have been hit the hardest by foreclosures like California, Nevada, and Florida.

To read more about the US government subprime effort off its pace head on over to Reuters.