DOW JONES NEWSWIRES
Mortgage giant Fannie Mae (FNM) again extended its suspension of
eviction proceedings through March 31, a day after its sibling
company Freddie Mac (FRE) took similar action to give loan
servicers more time to help borrowers avoid foreclosure.
Fannie Mae also issued special foreclosure-sale requirements as
it implements the Obama administration's Making Home Affordable
program.
A foreclosure sale may not occur on any Fannie Mae loan until
the loan servicer verifies that the borrower is ineligible for a
mortgage modification and all other foreclosure-prevention
alternatives have been exhausted.
Fannie and Freddie 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.
This is the fourth extension of eviction suspensions. Both
Fannie Mae and Freddie Mac started a program to suspend
foreclosures evictions on Nov. 26.
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.
Fannie's shares recently traded at 38 cents, up 5.6%, in
after-hours trading while Freddie's climbed 8.3% to 39 cents.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com