Freddie Suspends Eviction Notices Again, Offers Rental Plan

   DOW JONES NEWSWIRES 
 

Freddie Mac (FRE) again suspended eviction notices - this time to April 1 - to give loan servicers more time to help financially strapped borrowers avoid foreclosure, just a day after extending its suspension on certain foreclosure sales.

The moves come on top of multiple other actions taken by Freddie and fellow mortgage giant Fannie Mae (FNM) to offer relief to cash-strapped homeowners who face losing their homes.

The firms on Wednesday outlined plans to offer new refinancing options to homeowners whose loans they own and said they will work with loan servicers to help borrowers modify their loans into more affordable mortgages as part of the Obama administration's "Making Home Affordable" program.

The government took over both Fannie and Freddie in September after they ran up billions of dollars in losses and saw their portfolios suffer amid rising foreclosures and exposure to subprime mortgages.

Freddie also officially launched on Thursday its plan to offer former owners and tenants the option to lease their recently foreclosed properties on a month-to-month basis. That plan was unveiled in January. As of last month, there were 8,600 foreclosures in Freddie's pipeline.

To qualify for a lease, the tenant or former owner must occupy the property and show he has adequate income to pay the monthly rent based on market rates in the area. If an occupant doesn't wish to lease the property, Freddie will continue offering relocation assistance.

Freddie shares fell 3.3% to 40 cents in recent trading and have lost 98% of their value in the past year.

-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; [e-mail]