Further proving we haven't learned our lessons from the "free stuff" era of Covid "relief" that taxpayers funded and continue to pay for via out of control inflation, the government announced last week it is working on a way to reward people who don't pay their bills "help struggling homeowners meet their mortgage obligations".
The program comes from the Federal Housing Administration, who posted a proposal for feedback on an initiative called "the Payment Supplement Partial Claim", which as the government's press release says, "would allow mortgage servicers to use the FHA Partial Claim both to bring a borrower's mortgage current and to provide temporary reductions to their monthly mortgage payments for up to five years."
Ironically, the Department is citing high interest rates as a reason for implementing the program, stating "The rapid and steep interest rate increases of the past year have limited the effectiveness of some of FHA's existing loss mitigation options in assisting borrowers."
Interest rate hikes were, of course, due to out of control inflation, which was the result of government "freebies" for those who couldn't pay their bills to begin with.
The release continues: "FHA's widely used loan modification option, which has historically reduced borrowers' monthly payments to levels they can afford, is no longer as effective as it once was because borrowers are forced to modify at market rates that may be higher than their current rates."