(Updates with statement from the Federal Housing Finance Agency.)
DOW JONES NEWSWIRES Embattled mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) will suspend foreclosure sales and evictions on certain properties until January to give servicers more time to help borrowers avoid foreclosure.
Fannie and Freddie, which are under government control, said last week they would help streamline the modification of loans for potentially hundreds of thousands of homeowners who are at least 90 days behind on their mortgage payments.
The Bush administration said it would use the mortgage giants to extend aid to struggling homeowners, a move that top federal regulators, lawmakers and others said didn't go far enough to stem home foreclosures.
"The foreclosure suspension announced today by Fannie Mae and Freddie Mac will help homeowners and servicers utilize the new streamlined loan modification program announced by FHFA, Fannie Mae, Freddie Mac and HOPE Now," Federal Housing Finance Agency director James B. Lockhart said. "With this suspension, seriously delinquent borrowers may have an opportunity to avoid foreclosure and work out terms to stay in their homes."
The temporary suspension applies to 10,000 borrowers with Fannie-owned mortgages and 6,000 with Freddie-owned mortgages in occupied single-family and two- to four-unit properties with foreclosure sales scheduled between Nov. 26 and Jan. 9.
It won't apply to vacant single-family properties.
"By working closely with FHFA and our servicers, Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year," Freddie Chief Executive David M. Moffett said.
The federal program to streamline the modification of loans is scheduled to begin by Dec. 15.
- By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com
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(END) Dow Jones Newswires
November 20, 2008 17:52 ET (22:52 GMT)

Publié le 20 novembre 2008 Copyright © 2008 Dowjones