Agencies Clash Over Mortgage Relief — New York Real Estate

Agencies Clash Over Mortgage Relief

by Raja Tayeb on December 13, 2010

housing agencies clash over mortgage program relief

The two federal agencies charged with setting housing policy are at odds over a new program aimed at assisting borrowers whose homes are “underwater,” or worth less than what is owed on the mortgages.

The Federal Housing Administration believes the program, which launched in September, could avert a large number of foreclosures by allowing some underwater borrowers who are current on their mortgages to refinance into more affordable loans with a smaller balance and lower interest rate.

But the Federal Housing Finance Agency is worried that the program could turn into a costly and logistical mess if its scope is widened to include Fannie Mae and Freddie Mac.

Source: Washington Post, Dina El Boghdady and Zachary A. Goldfarb (12/10/10)

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This entry was posted in Foreclosures, Housing Market News Update, mortgage, New York Real Estate and tagged , , , . Bookmark the permalink.

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