The Federal Housing Administration is seeking feedback on a proposal that would enable lenders to lengthen the loan term for FHA-backed mortgages in COVID-19-related forbearance plans to 40 years.
“Increasing the maximum term limit to 480 months would allow mortgagees to further reduce the borrower’s monthly payment as the outstanding balance would be spread over a longer time frame, providing more borrowers with FHA-insured mortgages the ability to retain their homes after default,” the