Federal Housing Administration lender and Ginnie Mae issuer Lend America, Melville, N.Y., said it is finalizing a "structured transaction" designed to help "a major global financial institution" refinance a roughly $1 billion pool of sub-performing loans into mortgages with more affordable terms.
Lend America declined to name the client. The effort is being done through the government's new Hope for Homeowners program. The company said the move is part of a new effort to help first-lien holders, including Wall Street banks and hedge funds, "maximize principal recapture and help homeowners avoid foreclosure" by tapping the new government program.
Lend America said it has 300 FHA mortgage specialists in a central location who receive a mandatory 10 hours of H4H classroom training and certification. It said these specialists are able to "contact delinquent borrowers, assess affordability and work under appropriate guidelines to refinance a mortgage within as little as 10 days." Under the H4H program, lenders can refinance struggling borrowers who obtained mortgages prior to January 2008 into more affordable loan programs.
