The Federal Housing Administration (FHA) announced Wednesday that it’s increasing the maximum term for a mortgage modification to 40 years or 480 months. The previous term limit was 30 years or 360 months. The federal agency suggested the move would protect borrowers against default if they had lower monthly payments. The new regulation aims to help homeowners retain their homes after defaulting by allowing mortgagees to further reduce the borrower's monthly payment, since the outstanding balance would be spread over a longer time frame. The change will align FHA with modifications available to borrowers with mortgages backed by the Federal...