Lenders and servicers are analyzing their borrowers for good candidates for the H4H program, and the FHA and its authorized lenders are poised to process applications. We appreciate the additional flexibility provided to the program by Congress in EESA, in particular allowing up-front payments to junior lien holders that agree to release their claims.
For some time, we have called upon lenders, investors, and servicers to aggressively pursue sustainable loss mitigation activities. For example, last year the Federal Reserve and the other banking agencies issued supervisory guidance to encourage mortgage lenders and servicers to pursue prudent loan workouts.