Fannie Mae and Freddie Mac Follow Banks with Foreclosure Moratorium!

Phoenix Business Journal

Fannie Mae and Freddie Mac said they will suspend foreclosure sales involving occupied single-family and two- to four-unit residential properties through March 6.

The announcement from McLean, Va.-based Freddie (NYSE:FRE) and Washington D.C.-based Fannie (NYSE:FNM), which own or guarantee almost half of the nation’s mortgages, comes after some of the largest U.S. banks with Arizona operations last week agreed to a similar measures while the government works out a plan to stabilize the banking industry.

Moratoriums from JPMorgan Chase, Wells Fargo, Bank of America Corp. and Citigroup Inc. also will remain in effect until March 6.

Fannie Mae and Freddie Mac said the temporary suspension should give give loan servicers more time to help troubled borrowers find an alternative to foreclosure. The latest suspension does not apply to vacant properties in foreclosure.

In addition, the moratorium gives lenders servicing Freddie Mac mortgages broad authority to provide forbearance to borrowers who are not yet delinquent, the lender said. Lenders also can provide permanent rate reductions, mortgage term extensions, forbearance of principal or other modifications to borrowers who are delinquent.