Freddie Mac, Fannie Mae to Create Bad Credit Mortgage Assistance Programs
The chief executives of mortgage finance companies Fannie Mae and Freddie Mac are expected to unveil plans on Tuesday to help subprime borrowers, the Wall Street Journal reported on its site.
Fannie Mae Chief Executive Daniel Mudd and Freddie Mac’s Richard Syron are due to testify before the U.S. House of Representatives Financial Services Committee later today. Subprime lenders extend Florida mortgages to people with weak credit.
Mudd plans to tell the panel that Fannie Mae is expanding its products to let subprime borrowers refinance out of some adjustable-rate Florida home loans, the Journal reported, citing prepared congressional testimony.
Mudd also plans to say that Fannie Mae is adjusting its credit requirements to allow more borrowers to qualify for the option, the Journal said.
Fannie Mae will also purchase 40-year loans on the secondary market, the Journal said, citing Mudd’s testimony.
Freddie Mac’s Syron plans to tell the panel that his company is developing 30- and 40-year subprime Florida mortgage loans with reduced margins and longer fixed-rate periods, the paper said. As this story develops, we’ll provide readers with updates.
April 23rd, 2007 at 9:41 am
I lost my job in 2002 and it destroyed my credit. With children, two very sick and one with a that is getting over a sickness, and a wife not working, I NEED REAL HELP. My When I lost my job the agent put me in a subprime loan, frauduently I might say. My payments skyrocketted just at closing with an addition out-of-pocket payment that the mortgage knew nothing about. I believe the builder pocketed the money. I need to refinance and lower these payments to get on my feet. Please help me with this Freddie Mac, Fannie Mae to Create Bad Credit Mortgage Assistance Programs.
May 24th, 2007 at 4:08 pm
Wow. I am in the process of trying to purchase a home! I was told it would be @ 11% and my payment would be $2400.00 with tax and insurance. Today my broker called me and told me I could get it for 7% and lowered my payment. I was crying on the phone. My broker is the best!