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Protective Insurance Payments Demonstration: A Temporary Mortgage Assistance Program

Release Date: 
June 1980 (38 pages)
Posted Date:   
January 5, 2011

This report summarizes the results of a demonstration of the Protective Insurance Payments (PIP) Program, which was designed as a cost - effective delivery system for mortgagors who face the loss of their homes due to economic stress or other reasons beyond their control. The PIP program provided that, for mortgagors who were 3 full monthly payments in arrears and who met the eligibility criteria established for the demonstration, HUD would make monthly mortgage payments. The report briefly reviews HUD's housing policy, mortgage servicing practices, and the Home Mortgage Assignment Program and discusses the design and implementation of the PIP demonstration program. The basic legal documents used in the program are outlined, and members of the government / industry panel who met to review the policies and procedures of the program are identified. The demonstration program indicated that the PIP program was a workable and effective system. In 1980, new legislation was enacted authorizing HUD to implement a national program of temporary mortgage assistance payments (TMAP's). The implementation of this national TMAP program and its cost effectiveness are discussed, as well as its legal implications / impediments. Implementation of the TMAP Program can now be accomplished as a result of the amendment of Section 230 of the National Housing Act to permit use of the HUD insurance funds for loans or advances for the benefit of the mortgagor and to protect the insurance funds. The principal advantages to HUD of the TMAP Program are the TMAP permits delivery of assistance at a substantially lower initial cash outlay and preserves the responsibilities for serving with the mortgage service industry. No references are cited. (Author abstract modified)

This report is part of the collection of scanned historical documents available to the public.

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