The Obama administration is requiring FHA to participate in special program that extends forbearance periods for unemployed homeowners from four to 12 months to help them avoid foreclosure while seeking re-employment. The current unemployment forbearance programs have mandatory periods that are inadequate for most unemployed borrowers, said Department of Housing and Urban Development Secretary Shaun Donovan. Servicers participating in the Making Home Affordable Program may also be directed to extend the minimum forbearance period to 12 months wherever possible under regulatory or investor guidelines, Donovan added. Specifically...