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Many homeowners are confused by
mortgage relief opportunities today, as
home refinancing and loan modification offers are being promoted on the TV and airwaves. Homeowners who are struggling to make mortgage loan payments now have a new place to turn for information on home loan programs that could help. Mortgage giant Fannie Mae has just launched a new web site, KnowYourOptions.com, that aims to help homeowners figure out the best solution to a difficult problem. But is a company that has so far racked up $75 billion in bailout funds from the U.S. Treasury in any position to dole out advice? Guy Cecala, the publisher of Inside Mortgage Finance, a trade publication, says yes. While Fannie Mae and its sister company, Freddie Mac, continue to receive attention as the mortgage crisis unfolds, they’re not linked to the borrowers in the deepest trouble, says Cecala. They maintained stricter underwriting standards than the true
bad credit mortgage loan programs that were pushed by subprime lenders a few years ago. “The size of Fannie Mae’s problems has more to do with the size of the firm and their footprint in the industry, rather than their underwriting,” Cecala says.
Consumer advocates argue that any effort to educate homeowners about their options is worthwhile. The foreclosures rates continue to rise, with more than 1.6 million properties facing foreclosure filings in the first half of the year. Although the new web site stresses foreclosure prevention as a key goal for any consumer, the options presented don’t always help homeowners remain homeowners. “People are coming to the conclusion that it doesn’t necessarily help people to stay in a home that they can’t afford,” Cecala says. Read more: Mortgage Advice From Fannie Mae? – Personal Finance – Real Estate – SmartMoney.com
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