Fannie Mae and Freddie Mac will offer seriously delinquent, underwater borrowers a one-time principal reduction, the FHFA announced Thursday.
To be eligible, mortgage holders must have an outstanding balance of $250,000 or less and have mark-to-market loan-to-value ratios exceeding 115%. Other eligibility criteria will apply as well.
The FHFA estimated that some 33,000 owner-occupants who are 90 days or more delinquent as of March 1 will be eligible for the modification. Servicers must solicit eligible borrowers by Oct. 15, 2016.
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