Fending off foreclosure (prevention efforts by major mortgage investors)

Major mortgage investors, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., and mortgage insurers, such as the Department of Housing & Urban Development (HUD), are improving and refining their foreclosure prevention efforts. In the mid-1980s, Fannie Mae...

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Bibliographic Details
Published in:Mortgage banking 1990-11, Vol.51 (2), p.47
Main Author: DeZube, D
Format: Magazinearticle
Language:English
Subjects:
Default
Foreclosure
Homeowners
Lending institutions
Mortgage companies
Mortgage servicing
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Summary:Major mortgage investors, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., and mortgage insurers, such as the Department of Housing & Urban Development (HUD), are improving and refining their foreclosure prevention efforts. In the mid-1980s, Fannie Mae began by modifying loans to prevent foreclosures in oil patch states and then combed its portfolio to identify defaults before they happened. The goal of its foreclosure mitigation program is to help deserving borrowers who are facing hardship, without letting financially capable borrowers go unscathed. Fannie Mae plans to increase its demands that lenders pursue deficiency judgments against walkaway borrowers, and it will be more aggressive in the area of bankruptcy monitoring. The Federal Housing Administration's (FHA) deficiency judgement program has also worked well, and borrowers are now approaching FHA field offices with compromise offers before a deficiency judgment is obtained.
ISSN:0730-0212
1930-5087