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The Hellenic Radio (ERA): News in English, 08-11-11
From: The Hellenic Radio (ERA) <www.ert.gr/>
CONTENTS
[01] USA: Plan against Foreclosure of Homes
[01] USA: Plan against Foreclosure of Homes
The regulator for the two largest U.S. mortgage finance companies on
Tuesday unveiled a plan to cut monthly payments for struggling
homeowners in an effort to reverse a wave of defaults threatening the
economy.Homeowners who face foreclosure and are spending more than 38
percent of their income on mortgage payments could have monthly
payments reduced by Fannie Mae and Freddie Mac, the head of the Federal
Housing Finance Agency said.
"The streamlined modification program complements existing loan
mitigation programs," FHFA chief James Lockhart said at a news
conference. "We expect that it could significantly increase the number
of modifications completed."Fannie Mae and Freddie Mac own or insure
roughly half of U.S. home loans and the move is expected to provide
relief for hundreds of thousands of borrowers.Lockhart said borrowers
eligible for the new program could see their mortgage rates cut, life
of their loans extended or their principal reduced in an effort to ease
their debt burden. He said only borrowers delinquent by 90 days or more
would qualify for new loan terms.The program is the latest in a series
of what critics say have been piecemeal and ineffective moves to
address the record foreclosure rate and plummeting home prices.The plan
outlined on Tuesday was conceived in part by Hope Now, an industry
group midwifed by U.S. Treasury Secretary Henry Paulson last year to
help troubled borrowers stay in their homes.
News item: 15435
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