FHFA Fires Next Round In Housing Market Battle

Posted by Joe Manausa on Wednesday, November 12th, 2008 at 10:12am.

Federal Housing Finance Agency LogoWe have finally received news from the Federal Housing Finance Agency (FHFA) on what their plans are for reducing "preventable foreclosures" in the coming year. James Lockhart, the FHFA Director issued the statement yesterday with a preamble that stated "I do not like interfering with your Veterans Day, but as you all know there is a battle going on in the housing market."

As the regulator of Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBanks), the Federal Housing Finance Agency (FHFA) role in this action is to provide a streamlined program with uniform eligibility requirements and a consistent, efficient process approved by key industry participants. This program resulted from a unified effort among the Enterprises, Hope Now and its twenty-seven servicer partners, the Department of the Treasury, the Federal Housing Administration (FHA) and FHFA.

Federal Housing Finance Agency Offers Streamlined Modification Program

The News Release that the FHFA issued on Veterans Day outlines the streamlined modification program that will be utilized to process the foreclosures which have increase almost 150% from two years ago! In this release, the FHFA says that its Enterprises have mortgages which represent only 20% of serious delinquencies, and it is asking all the "private label" securities to adopt this program to create an industry standard.

The program targets the highest risk borrower who has missed three payments or more, owns and occupies the property as a primary residence, and has not filed for bankruptcy. To be considered for the program, a seriously delinquent borrower should contact his or her servicer and provide the requested income information.

Download The FHFA Streamlined Modification Program Announcement

The FHFA provided an easy-to-read news release that explains the program. It includes a lengthy portion dedicated to questions and answers on the streamlined modification program. You can download the FHFA news release in pdf format from here.

Happy Anniversary Trent And Mary Lou Manausa

Today is my parents wedding anniversary, so if you run into either one of them, please wish them a happy anniversary. I'm just amazed that my Mom has put up with Dad for so long.....

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Joe Manausa is a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

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