Starting this week, borrowers with mortgages backed by Fannie Mae and Freddie Mac who are at least 90 days delinquent will start receiving offers from lenders to lower their mortgage payments, CNN Money reported.

About 1.1 million borrowers are behind on their loans by three payments or more, the news outlet said, citing data from the Mortgage Bankers Association. Although not all of those loans are backed by Fannie and Freddie, CNN Money estimated hundreds of thousands could be offered loan modifications.

Unlike previous foreclosure prevention efforts, the Federal Housing Finance Agency’s Streamlined Modification Initiative will not require borrowers to file any financial paperwork. Lenders will lower payments by extending the term of the loan and reducing the interest rate. Borrowers will have to make the new payments for a three-month trial period before the modification becomes permanent.

Borrowers moving from a 30-year $200,000 loan with a 5.5 percent rate to a 40-year term with a 4 percent rate will reduce the monthly payment to $835 from $1,135 — a $300 difference, CNN Money said.

Source: CNN Money

Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription