Freddie Mac Teams With Nonprofit

In a pilot effort "to convince discouraged delinquent [Freddie] borrowers to pursue mortgage workouts," Freddie Mac has joined forces with 13 national and local nonprofits to assist them to avoid foreclosure. Freddie Mac's Borrower Help Centers in Chicago, Phoenix, San Bernardino and Washington will offer free, one-on-one "holistic" counseling to delinquent homeowners. In addition, Freddie has launched a national phone-based counseling Borrower Help Network. Freddie's "holistic" counseling assistance includes a review and feedback on mortgage issues, assessment of debt and credit profiles, and a borrower's ability to stay current after receiving a modification. The effort is based on the belief that fear and frustration are keeping thousands of eligible borrowers from getting help and receiving a loan modification, said Freddie Mac chief executive Ed Haldeman. Participating nonprofits can make a difference, he said since they are "trusted and valued sources in their communities." Freddie also quoted NeighborWorks data showing that compared to other borrowers, those who already are in some stage of foreclosure are 60% more likely to keep their homes, as an additional reason behind the initiative.