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Fannie and Freddie Loosen Modification Guidelines

Posted in Fannie Mae, Mortgage Modification

FHFA expands suite of loan mod tools By Kerri Ann Panchuk • March 27, 2013 • 9:00am Servicers dealing with loans guaranteed or owned by Fannie Mae and Freddie Mac will soon be required to offer eligible distressed borrowers ways to lower their monthly payments if the homeowner shows a willingness and ability to make three on-time trial payments, the Federal Housing Finance Agency said. The program, which begins July 1, applies to borrowers with GSE loans that are 90 days or more past due. The idea behind what the FHFA is calling the Streamlined Modification Initiative is to encourage servicers to handle delinquencies earlier, minimizing losses to the GSEs and taxpayers, while cutting back some of the red tape that slows down the traditional approval process. All eligible borrowers have to do is make three on-time trial payments, the FHFA said. Once those payments...

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Fannie and Freddie – No Principal Reductions

Posted in Principal Reduction

The reason foreclosures will continue  By Paul McMorrow Thanks to the Boston Globe February 19, 2013 A year ago, 49 states and the federal government brought five of the country’s biggest banks to heel. They crafted a nationwide foreclosure settlement that ended a series of abuses, and committed the banks to keeping struggling homeowners off the streets. The settlement is working. But as it takes hold, it’s exposing a huge rift in the housing market. The government’s own mortgage arms, Fannie Mae and Freddie Mac, still won’t meet the same standards the big banks have committed to, and until they do, foreclosures will continue to drag on. Prior to last year’s settlement, the nation’s biggest banks greeted the foreclosure crisis with indifference. They paid lip service to the notion of helping troubled homeowners, but let homeowner assistance languish while...

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