FHA "Secure"!

King" Bush's "new" program to save the Mortgage World! I will state ahead of time, FHA has always been a great vehicle for home buyers, first time and others. You even used to be able to do investment loans, and that was really great. But now that "King" bush has gotten ahold of it to save the "mortgage" world, I'm concerned about "its" survivability!
FHA "Secure" is meant for those that have kept their payments on-time before their ARM's (adjustable rate mortgage) adjusted. Than they went "late" ,but no more than two 30 day lates (this criteria is a moving target, obviously credit score will go down!). They can apply to refinance on an FHA 30 year fixed (around 6%), with less stringent approval guidelines ( mostly credit scores), they can get approved, get fixed in, get their payments lowered and go forward saving their "investment"! You still have to qualify, still have to have 5% or better equity (very tough, because most of the people needing this program bought their homes at "ZERO" down, "BEFORE" the values dropped!) Now FHA is asking the lenders to take losses and write down the mortgage to get more loans refinanced! Fat chance!
For those borrowers that were "on-time" with their payments but needed some of the less stringent approval guidelines, I was advised to tell them to let their mortgage to go "late" and this loan would save them! I just couldn't do it!.What if it didn't work? By the way the other creditors (credit cards, car loans...) can do "soft-pulls" (pulling your credit behind the scenes, just to monitor, doesn't affect your score) and if they see credit issues (like your mortgage payments late!) they can raise their rates! Read the fine print in your agreement with all your creditors!
This program has actually helped a few thousand compared to the few million going through this nightmare! I Don't think their recent changes will provide the CPR needed to revive more Mortgages!
Have an amazing week!
The Mortgage guy