FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022)

FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022)

g. Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022) The Housing and Economic Recovery Act of 2008 amends the National Housing Act to authorize the temporary Homeownership and Opportunity for People Everywhere (HOPE) for Homeowners Program (also referred to as the H4H Program). Under the program, a Borrower facing difficulty paying their Mortgage was eligible to refinance into an affordable FHA-insured Mortgage. The H4H Program was effective for endorsements on or after October 1, 2008, through September 30, 2011. i. HUD Contact Mortgagees should contact HUD’s Servicing Contractor for questions related to servicing or satisfaction of H4H Exit Premium Mortgages (EPM). ii. Annual Premium The Mortgagee must collect the annual premium at 0.75 percent of the Base Loan Amount. The Mortgagee must follow standard FHA guidelines for the cancellation of the annual premium. iii. Voluntary Termination of Mortgage Insurance The Borrower and Mortgagee may mutually request termination of mortgage insurance. The Borrower will not receive a refund of any Upfront Mortgage Insurance Premium (UFMIP) received by HUD and will remain obligated for the exit premium and appreciation Mortgages. iv. Sale and Payoff Upon sale or other disposition of the Property securing an H4H Mortgage, the Borrower must satisfy HUD’s equity interest, if not already satisfied through refinance. HUD is entitled to its respective percentage of the initial equity amount as stated in the EPM, even if there are no net proceeds or if net proceeds are negative. Upon receipt of a payoff request, HUD’s Servicing Contractor will calculate the payoff amount for its equity interest and issue a payoff demand to the Closing Agent. v. Refinancing HUD will permit the refinancing of an H4H Mortgage subject to the requirements established in this section. In the event of any refinance of the H4H Mortgage, the Borrower must pay to HUD its full equity interest as stated in the EPM. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022) Handbook 4000.1 1359 Last Revised: 11/26/2025 HUD will permit the refinancing into another conventional loan product no earlier than 12 months from the date of closing on the H4H Mortgage. The Borrower may refinance if: • the refinance results in a 30-year amortizing fixed rate Mortgage with a Principal and Interest (P&I) payment that is lower than the P&I payment due on the existing H4H Mortgage; • the proceeds from the refinance are sufficient to pay off the percent of initial equity due to HUD; and • the cash received by or on behalf of the Borrower is limited to the Borrower’s applicable percentage of initial equity created by the H4H Mortgage, as stated in the EPM, any earned equity the Borrower has accrued, and any appreciation. vi. Default and Loss Mitigation The Mortgagee may utilize HUD’s Loss Mitigation Program for H4H Mortgages, subject to the following special considerations. (A) Loan Modifications HUD will subordinate the EPM to the modification of an H4H Mortgage completed in accordance with HUD’s Loss Mitigation Program. (B) Partial Claim For a Partial Claim Note, HUD does not require subordination of the EPM. (C) Pre-Foreclosure Sale The Mortgagee must include the total dollar amount of the EPM in the total debt calculation for the negative equity ratio calculations. (D) Deed-in-Lieu HUD will accept a DIL subject to the EPM lien. vii. Exit Premium (A) Definition Initial equity is the lesser of: • the appraised value at the time of the H4H loan origination less the original principal balance on the H4H Mortgage; or • the outstanding amount due under all existing Mortgages less the original principal balance on the H4H Mortgage. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022) Handbook 4000.1 1360 Last Revised: 11/26/2025 (B) Standard In the event of refinance, sale, or other disposition, HUD is entitled to receive the following percentage of initial equity: Year % of equity to be paid to FHA During Year 1 100% of equity During Year 2 90% of equity During Year 3 80% of equity During Year 4 70% of equity During Year 5 60% of equity After Year 5 50% of equity III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages

Source: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022) · source URL · snapshot 8c03836f77f317e1