• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

For the Government, a Step Forward on Mortgages

Mortgage giants Fannie Mae and Freddie Mac are going to speed up loan modifications for hundreds of thousands of borrowers, the government announced today.

As we said earlier, some help for homeowners couldn’t come too soon, given all that’s been done for banks, insurance companies, and anyone else with their hands out.

This new effort isn’t as widespread as some housing advocates have been pushing for – it applies only to Fannie and Freddie loans, and there are restrictions on who can qualify – but since the two agencies hold half of all the nation’s mortgages, streamlining modifications is an important move. The government hopes more lenders and servicers will follow suit, the Wall Street Journal says.

I think the most important thing about this latest plan is that it includes paying services to do loan modifications. One holdup in redoing loans has been the lack of financial incentives for servicers, who stand to earn more by foreclosing.

From the Journal:

Servicers are expected to be paid $800 for a successful modification and loan investors are expected to reimburse servicers for certain fees associated with the modification. There will be a 90-day trial period, and if borrowers successfully make payments for those 90 days the modification will be formally approved.

That seems more than fair to me. The government still is working on a more sweeping plan, but this one certainly is a good start, and it’s more help for homeowners than we’ve seen so far.

It’s far too early to call this a trend, and to expect more in the immediate future. But the move pushes forward the slow, incremental progress being made toward more loan modifications, and toward helping more homeowners. Congress passed that $700 billion bailout bill in short order. Helping homeowners clearly is going take longer, with plenty of complications. But it inched ahead a bit more today, and that’s a hopeful sign.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.