Clea Benson, Bloomberg
Seriously delinquent borrowers with mortgages owned or backed by Fannie Mae (FNMA) and Freddie Mac will be able to reduce monthly payments without documenting finances under a program introduced by the companies’ regulator.
The move announced today by the Federal Housing Finance Agency is designed to stem losses to the U.S.-owned firms by letting borrowers at least 90 days behind on their loans bypass the administrative hurdles of typical loan modifications. Homeowners may still give their lender documents on financial hardships and can save more money by doing so, the agency said.
“This new option gives delinquent borrowers another path to avoid foreclosure,” Edward J. DeMarco, the FHFA’s acting director, said in a statement.