Fannie Mae and Freddie Mac to Broaden Support for Troubled Borrowers
|November 12, 2008|
Fannie Mae and Freddie Mac have joined representatives from the U.S. Department of Treasury, HUD, the Federal Housing Finance Agency, and the HOPE NOW Alliance to announce a streamlined mortgage modification program that will help borrowers across the country at the highest risk of losing their homes. The program features uniform eligibility requirements, easier processing, and uses less documentation than other loan mod processes. It builds on Freddie Mac's foreclosure avoidance efforts which we estimate will provide a workout to three out of five troubled borrowers with Freddie Mac-owned loans this year.
Freddie Mac is currently finalizing the operational and implementational details and will be communicating additional information to Freddie Mac Servicers as soon as possible. The streamlined modification program is in addition to the many workout options available to, and being used by Freddie Mac Servicers today. We expect that the new program will expand on our current efforts to assist as many borrowers as possible.