DOW JONES NEWSWIRES
Freddie Mac (FRE) again suspended eviction notices - this time
to April 1 - to give loan servicers more time to help financially
strapped borrowers avoid foreclosure, just a day after extending
its suspension on certain foreclosure sales.
The moves come on top of multiple other actions taken by Freddie
and fellow mortgage giant Fannie Mae (FNM) to offer relief to
cash-strapped homeowners who face losing their homes.
The firms on Wednesday outlined plans to offer new refinancing
options to homeowners whose loans they own and said they will work
with loan servicers to help borrowers modify their loans into more
affordable mortgages as part of the Obama administration's "Making
Home Affordable" program.
The government took over both Fannie and Freddie in September
after they ran up billions of dollars in losses and saw their
portfolios suffer amid rising foreclosures and exposure to subprime
mortgages.
Freddie also officially launched on Thursday its plan to offer
former owners and tenants the option to lease their recently
foreclosed properties on a month-to-month basis. That plan was
unveiled in January. As of last month, there were 8,600
foreclosures in Freddie's pipeline.
To qualify for a lease, the tenant or former owner must occupy
the property and show he has adequate income to pay the monthly
rent based on market rates in the area. If an occupant doesn't wish
to lease the property, Freddie will continue offering relocation
assistance.
Freddie shares fell 3.3% to 40 cents in recent trading and have
lost 98% of their value in the past year.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964;
lauren.pollock@dowjones.com