Lenders taking pre-emptive measures

December 01, 2008 10:53AM

Lenders are taking steps to
help borrowers as the unemployment rate, a trigger of mortgage default,
rises. A new initiative will allow homeowners to change the terms of
their Fannie Mae- and Freddie Mac-backed loans, lowering interest rates
and extending repayment time, if the costs of homeownership exceed 38
percent of the homeowner’s gross monthly income. The Hope for
Homeowners program is also offering incentives to loan servicers to
modify mortgage terms.

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