Fannie, Freddie extend foreclosure freeze
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Fannie, Freddie extend foreclosure freeze
Fannie Mae and Freddie Mac announced Thursday that they will delay the end of their foreclosure and eviction freeze from Friday to end of the month.
The freeze, which applies to occupied houses and started in November, was originally intended to give the streamlined modification program that the Federal Housing Finance Agency announced in November time to work. The extension will allow the mortgage giants, which the federal government took over in September, more time to implement the streamlined modification program.
"Freddie Mac is committed to pursuing every responsible opportunity to reduce foreclosures and accelerate the return of stability to the U.S. housing market," David Moffett, the company's chief executive, said in a news release.
"Today's announcement will provide Freddie Mac and its servicers additional opportunities to help put more families on the path to stable homeownership."
Fannie said it would also use the extra time to start up its new policy for allowing renters to stay in homes that have reverted to the company.
The streamlined modification program aims to help borrowers who have missed at least three payments, live in the home as their primary residence and have not filed for bankruptcy. It uses interest rate reductions, extension of the loan life and principal payment deferrals to get payments down to no more than 38 percent of gross monthly income.
Fannie, Freddie extend foreclosure freeze
Fannie Mae and Freddie Mac announced Thursday that they will delay the end of their foreclosure and eviction freeze from Friday to end of the month.
The freeze, which applies to occupied houses and started in November, was originally intended to give the streamlined modification program that the Federal Housing Finance Agency announced in November time to work. The extension will allow the mortgage giants, which the federal government took over in September, more time to implement the streamlined modification program.
"Freddie Mac is committed to pursuing every responsible opportunity to reduce foreclosures and accelerate the return of stability to the U.S. housing market," David Moffett, the company's chief executive, said in a news release.
"Today's announcement will provide Freddie Mac and its servicers additional opportunities to help put more families on the path to stable homeownership."
Fannie said it would also use the extra time to start up its new policy for allowing renters to stay in homes that have reverted to the company.
The streamlined modification program aims to help borrowers who have missed at least three payments, live in the home as their primary residence and have not filed for bankruptcy. It uses interest rate reductions, extension of the loan life and principal payment deferrals to get payments down to no more than 38 percent of gross monthly income.
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