Fannie and Freddie Not Interested in Mortgage Modifications

By Kyle Chezum Updated on 12/9/2010

12/09/2010

The Obama Administration has had a difficult time convincing Fannie Mae and Freddie Mac to modify the mortgages of homeowners who own more than their homes are worth.  The FHA short refinance program, introduced earlier this year, is meant to offer government incentives to lenders who agree to modify loans.

But few lenders have accepted the offer, even though the program will likely save lenders significant money if home prices continue to fall.  Experts predict that millions more homes will be foreclosed on before the market fully recovers.

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