August 31, 2022 — Letter

A group of representatives from consumer advocacy, civil rights, and housing industry
organizations met to discuss an emerging issue. Namely, the rise in home prices over the last several years has resulted in positive equity for many homeowners, including borrowers who are delinquent and could possibly benefit from a retail sale of the property in lieu of foreclosure. Given the cost of alternative housing, most borrowers who are delinquent or in COVID-19 forbearance would prefer to remain in their homes, if possible, and therefore a deferral/standalone partial claim or loan modification would be their best option for doing so.