Freddie Mac is working with the Federal Housing Finance Agency to form permanent foreclosure-avoidance programs as HAMP and HARP near their ends, reports HousingWire Editor-in-Chief Jacob Gaffney.
In its third-quarter filing, Freddie Mac said it helped approximately 16,000 borrowers avoid foreclosure. Although there are now fewer defaulted mortgages, foreclosures are still a part of Freddie Mac’s regular business.
[CEO Donald] Layton said efforts are being made to make permanent a government-defined method for handling the modification of distressed mortgages.
“These crisis-era programs are not disappearing, the new solutions will be permanent,” he said, without giving a specific timeline. Currently, both HAMP and HARP are set to expire at the end of next year.