Private Sector Players Pledge Mortgage Bailout Relief

Syndicated columnist Kenneth Harney reports that major mortgage market players are expressing intentions to provide mortgage bailout relief, in an article reported in Realty Times. According to the article:

• "Freddie Mac told a Senate foreclosure-avoidance summit last Wednesday that it planned to devote $20 billion to help refinance subprime buyers facing unaffordable payment adjustments or foreclosure into fixed rate conventional loans."

• "Fannie Mae earlier had announced a new refinancing program of yet-undetermined dollar volume to reach out to ailing subprime borrowers with adjustable rates on the rise."

• "Washington Mutual announced last week that it would refinance up to $2 billion worth of subprime adjustables into 30-year fixed rate loans, and cut one half percentage point off its regular fixed rates to make the deals more affordable."

Citigroup and the Federal Housing Administration have also reportedly chimed in with their intentions to participate in the expected subprime bailout. For more, see Major Mortgage Players Pledge Foreclosure Relief; May Alleviate Fallout.
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