FHFA Lockhart Sees GSE Loan-Adjustment Plan As 'New Standard'
"Hopefully it will become the new standard," Federal Housing Finance Agency Director James Lockhart said while speaking at the New America Foundation.
Under the new plan, Fannie and Freddie will work with strapped borrowers to adjust their mortgage payments to no more than 38% of monthly gross household income. The modifications will include extending the term of the loans, modifying interest rates and principal forbearance.
The program targets borrowers more than 90 days past due. Lockhart, along with other U.S. officials, unveiled the plan on Tuesday.
"We're going to encourage the servicers of [private-label] securities to do this as well," Lockhart said.
-By Jessica Holzer, Dow Jones Newswires; 202-862-9228; jessica.holzer@dowjones.com
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(END) Dow Jones Newswires
November 13, 2008 17:05 ET (22:05 GMT)
Publié le 13 novembre 2008 Copyright © 2008 Dowjones
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