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FHA Mortgage Workout Lacks Incentives and Creates Problems: Industry Sources 

Mar 26, 2010By

New plans to push lenders to offer principal forgiveness and originate Federal Housing Administration (FHA)-backed refinance mortgages are leading borrower advocates to argue that the program isn’t enough to entice lenders and servicers to participate. Additionally, industry players are concerned over the potential moral hazard the initiative potentially presents.

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