The Federal Housing Finance Agency recently directed government mortgage giants Fannie Mae and Freddie Mac to extend both the Home Affordable Modification Program and streamlined modification initiative until 2015.
The news came just after the U.S. Treasury and Department of Housing and Urban Development said they would extend HAMP for non-Fannie and Freddie loans, but the FHFA’s directive makes the extension applicable to loans owned or guaranteed by Fannie and Freddie.
“One of FHFA’s priorities is to provide assistance to struggling borrowers who are at risk of losing their homes,” FHFA Acting Director Edward J. DeMarco said. “These extensions keep two valuable foreclosure prevention programs available to those who need them. The extensions also align the end date for three key assistance programs that were developed in response to the housing crisis.”
HAMP, which allows struggling homeowners to reduce their monthly payments, was scheduled to run through the end of the year. The streamlined modification initiative, which allows borrowers to avoid foreclosure and lower their monthly payments, was originally expected to run through August 2015.
Since the first full quarter in conservatorship in 2008, Fannie and Freddie have completed more than one million foreclosure prevention actions and more than 435,000 permanent HAMP modifications.