Aid To Subrime borrowers
Fannie Mae and Freddie Mac plan to offer new products to help subprime borrowers sidestep foreclosure, and they are expected to provide details of these alternatives to the House Financial Services Committee today.
Fannie Mae is scaling back its credit requirements so that subprime borrowers do not have to pay off other debts and boost their credit scores before becoming eligible for fixed-rate refinancing. Additionally, the government-sponsored enterprise will announce plans to purchase 40-year mortgages.
Meanwhile, Freddie Mac will unveil plans for 30- and 40-year subprime mortgages that carry fixed rates for an extended time.
Source: The Wall Street Journal, Damian Paletta (04/17/07)
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Fannie Mae is scaling back its credit requirements so that subprime borrowers do not have to pay off other debts and boost their credit scores before becoming eligible for fixed-rate refinancing. Additionally, the government-sponsored enterprise will announce plans to purchase 40-year mortgages.
Meanwhile, Freddie Mac will unveil plans for 30- and 40-year subprime mortgages that carry fixed rates for an extended time.
Source: The Wall Street Journal, Damian Paletta (04/17/07)
.