Fannie, Freddie to Offer Mass Loan Modifications

Housing giants aim to reduce foreclosures
By Kevin Spak,  Newser Staff
Posted Nov 11, 2008 10:37 AM CST
In this May 9, 2008, file photo, a foreclosure sign stands outside a home on the market in Denver.   (AP Photo)
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(Newser) – Fannie Mae and Freddie Mac will roll out a plan today to modify hundreds of thousands of loans in an effort to prevent foreclosures, the Wall Street Journal reports. The mortgage giants, under federal conservatorship, aim to reduce mortgage payments to no more than 38% of household income. Private banks will be encouraged by the Treasury to perform similar surgeries.