The new policy includes the implementation of a waterfall of loan modifications designed to reduce borrowers' monthly mortgage payment by at least 20%.
Those opposed include the American Bankers Association, the Housing Policy Council, the Securities Industry and Financial Markets Association, the Structured Finance Association and U.S. Mortgage Insurers.
Pete Mills, a senior vice president of residential policy and strategic industry engagement at the MBA, wrote that the proposal has theoretical benefits but they’re impossible to assess given the limited details FHFA included in the request for comments.