Keys To Recovery To Help Homeowners Avoid Foreclosure

Fannie Mae plans to announce a new series of initiatives called “Keys To Recovery” on a conference call with investors and analyst. The new effort consists of providing solutions to help homeowners avoid foreclosure, and helping 1st time homebuyers with purchasing a home.

The first “Key To Recovery” includes helping “underwater” borrowers with loans owned by Fannie Mae to refinance up to 120 percent of the homes current value.

“Key To Recovery” number two is to provide $10 billion in financing for qualified first time homebuyers. This includes a renewal and expansion of Fannie’s partnership with the state Housing Finance Agency.

“Key To Recovery” number three provides families in hard hit communities to continue to live in their homes while making payments on a rent to own contract.

“Key To Recovery” number four includes pricing the jumbo conforming loans flat with conforming loans to raise assets throughout the year.

Fannie Mae’s outlook for 2008 sees the weakness in the housing market to continue to thrive. The company believes that the continued housing weakness will continue to lead to increased delinquencies, defaults and foreclosures while outstanding mortgage debt slows.

Richard F Gaylord, President of the National Associations of Realtors®, recognized Fannie Mae’s initiative by stating “We appreciate these new initiatives, which demonstrate Fannie Mae’s commitment to sustainable homeownership. NAR will continue to work with our partners to encourage enactment of further initiatives and legislation to help stabilize the housing market and aid in the recovery of the mortgage markets.”

For more mortgage news visit Future Planning Financial at www.fpf-direct.com.

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