FreedomWide- DEBT CONSOLIDATION, LOWER MONTHLY PAYMENTS, CONSOLIDATE DEBT

WASHINGTON (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) would have to meet new goals to invest in troubled loans and erase some mortgage debt for borrowers facing foreclosure under legislation contemplated by a leading Democratic lawmaker.

The two biggest sources of U.S. mortgage financing would be required to buy troubled loans that had undergone a reduction in their principal amount and could be forced to hold larger reserves against those loans going bad, according to the summary of a bill being drafted by Senator Christopher Dodd, chairman of the Senate Banking Committee.

Those provisions are part of a broader proposal that would expand the Federal Housing Administration and let it siphon troubled home loans out of the housing finance system.
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Tags: Fannie, Freddie, mortgage aid

This entry was posted on Thursday, March 27th, 2008 at 9:04 pm and is filed under Mortgage Lender & Broker News, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.