Fannie Mae to Banks: “Reach out to troubled borrowers.”
Fannie Mae to Banks: “Reach out to troubled borrowers”
New rules from Fannie Mae require home loan servicers to communicate more directly with homeowners who are troubled borrowers to expedite arrangements to help them avoid foreclosure. Jeff Hayward, senior vice president of Fannie Mae’s national servicing organization said:
Troubled borrowers must know options
“We want homeowners to be able to understand their options when facing foreclosure, and we want servicers to reach homeowners early in the process, communicate frequently and clearly and help homeowners avoid foreclosure.”
Troubled borrowers must be proactive
It’s an unfortunate fact of life that troubled borrowers often have trouble thinking clearly about their options. Hiding from the problems that afflict trouble borrowers only results in a steeper hill for them to climb. Talk to the people in your life you can trust about your situation. Troubled borrowers should not let pride get in the way of potential action they may be overlooking. Troubled borrowers must demonstrate to their mortgage holder that rectifying their situation is uppermost in their mind. If troubled borrowers don’t communicate with their lenders the lenders will assume that disaster is ahead and will act accordingly.
Incentives for loan servicers of troubled borrowers
Servicers will be eligible for incentives if they complete loan modifications or other arrangements within 120 days of the first delinquency. They will face punitive fees if they fail to follow the new Fannie Mae rules.
don’t wait for help to come to you. troubled borrowers must seek out the available help
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