Tuesday, June 4, 2013

Fannie Mae and Freddie Mac extend loan programs

WASHINGTON – May 30, 2013 – The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to extend two programs that help troubled borrowers stay in their homes: the Home Affordable Modification Program (HAMP) and the streamlined modification initiative. Both will now remain effective through 2015.

Earlier today, the U.S. Treasury and the Department of Housing and Urban Development announced that they’re also extending HAMP for non- Fannie Mae and Freddie Mac loans.

“One of FHFA’s priorities is to provide assistance to struggling borrowers who are at risk of losing their homes,” says FHFA Acting Director Edward J. DeMarco. “These extensions keep two valuable foreclosure prevention programs available to those who need them. The extensions also align the end date for three key assistance programs developed in response to the housing crisis.”

HAMP helps homeowners struggling to keep their loans current by lowering their monthly payments. The streamlined modification initiative, announced by FHFA on March 27, gives borrowers at least 90 days late another path to avoid foreclosure and lower their monthly payments without requiring financial or hardship documentation.

Since the first full quarter of 2008, Fannie Mae and Freddie Mac have completed more than 2.7 million foreclosure prevention actions. About half are permanent loan modifications, including more than 435,000 permanent HAMP modifications.

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