On August 6, 2010, FHA published Mortgagee Letter 2010-23, which provides guidance for enhancements to FHA's refinance program in order to support refinances for borrowers who owe more than the current value of their home. Incorporated into the enhancements is Emergency Economic Stabilization Act (EESA) funding through the Department of the Treasury (Treasury) for the payment of incentives to second lien holders and for payment of a portion of insurance claims. Section 1481(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed July 21, 2010, prohibits anyone convicted within the last 10 years, in connection with a real estate or mortgage transaction, of any of the following: (a) felony larceny, theft, fraud, or forgery; (b) money laundering; or (c) tax evasion from receiving assistance authorized or funded by EESA. For further information, please refer to Mortgagee Letter 2010-35.
