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Foreclosure Prevention

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Many homeowners face significant payment shock when their mortgages reset to higher interest rates or begin to amortize principal over the upcoming months. Current market conditions indicate that many of these borrowers will not be able to refinance their loans and will become at risk for default and foreclosure. The federal financial regulatory agencies implemented the Statement on Working with Mortgage Borrowers and the Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages to encourage lenders and servicers to take a systemic approach to addressing mortgage loans for owner occupied homes where the borrowers are current, but cannot afford their payments after their loans reset. In addition, the following written guidance and articles may be helpful.

Loan Modification and Refinance Programs

  • Making Home Affordable (www.makinghomeaffordable.gov)
    Making Home Affordable is a program the Obama Administration has introduced to help stabilize the housing market and help Americans reduce their monthly mortgage payments to more affordable levels. Eligible participants may have the opportunity to either refinance or modify their residential mortgage loans. The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures. This website provides homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration's program.

Industry Modification Criteria

Hurricane Relief Mortgage Forbearance Policies (www.ffiec.gov)

Legacy Loans Program

Foreclosure Rescue Scams

Supervisory Guidance

Laws and Regulations



Last Updated 11/18/2011 communityaffairs@fdic.gov