Statement by James B. Lockhart of Mortgage Rescue Policy by FHFA

Below is a link to the yesterday’s announcement of the mortgage rescue
package/plan by Federal Housing Finance Agency.

This plan encourages Fannie Mae and Freddie Mac, as well as private
mortgage holders, to modify mortgages held by borrowers who are in
financial trouble and on the verge of foreclosure. In order to be
eligible for a potential loan modification, a borrower must be at least
90 days behind in their payments, the property must be a primary
residence, and the new/modified payment must not exceed 38% of the
borrower’s monthly income.

Critics of this plan say it falls short as FNMA and FHMC don’t hold the
majority of the problematic sub prime loans in the market, but
nonetheless it is a step in the right direction to hopefully slow the
pace of foreclosures and stabilize the market.

http://www.fhfa.gov/GetFile.aspx?FileID=169


As always if you have any questions reagarding your local real estate values or buying a home please feel free to contact us anytime!