Washington: US mortgage giants Fannie Mae and Freddie Mac will offer a new and simplified loan modification initiative to help troubled borrowers avoid foreclosure and stay in their homes, authorities said.
The new streamlined modification program, which will begin this July and expire in August 2015, is only available to borrowers who are at least 90 days delinquent on their mortgage owned or guaranteed by Fannie Mae or Freddie Mac, the US Federal Housing Finance Agency (FHFA) said.
The mortgage giants will offer these eligible borrowers an easy way to lower their monthly payments and modify their mortgage without requiring financial or hardship documentation, reported Xinhua.
"This streamline modification initiative will cut through the paperwork and simplify the process of securing a permanent mortgage modification for struggling borrowers," Leslie Peeler, senior vice president of Fannie Mae, said in a statement Wednesday.
Since 2008, Fannie Mae and Freddie Mac have completed 2.7 million foreclosure prevention transactions, including 1.3 million loan modifications.