REALTORMag
About 33,000 seriously delinquent borrowers will likely be eligible for a new program under the mortgage giants to have mortgage balances reduced. The new plan – long rumored – was announced by the Federal Housing Finance Agency on Thursday. To qualify, the borrowers must owe more on their home than it is currently worth and meet other criteria.
FHFA, the regulator to Fannie Mae and Freddie Mac, said its principal reduction program “could well be their final opportunity to [help these borrowers] avoid foreclosure,” says Melvin L. Watt, the agency’s director.
