Doing the Right Thing is Always Right
The FHA is offering hurricane victims with FHA-insured mortgages to defer 12 months of payments [story].
The payments would be made as an interest-free loans that is not due until the mortgage is paid off. The money will be taken from the FHA insurance reserves that are funded by premiums.
This program could help up to 20,000 people that qualify, but a story on NPR this morning also made the point that this move might pressure other lenders to make similar offers.
Which goes to show that the marketplace needs a lead dog to step up to do the right thing and everyone else will follow. History shows this to be true.
A couple of examples:
- 1982: When poisoned Tylenol killed seven people, Tylenol’s rapid response made business history and made fodder for many more books about cirisi communication.
- September 11, 2001: After 9-11, Chubb Group of Companies was the first insurance company to announce that they wouldn't apply the war risk exclusion to its claims. Other insurance companies quickly followed suit.
The FHA announcement has the ingredients of this type of leadership. I would bet that many will join them as the they are clearly the “lead dog” on this effort.
Details about the FHA Program