Freddie Mac is getting a "positive" response from a pilot program that is aimed at getting hard-to-reach borrowers who are headed toward foreclosure to consider a loan modification offer. "In this new initiative, servicers solicit seriously delinquent borrowers with a pre-approved modification plan," Freddie chief executive David Moffett recently told a congressional panel. "Notwithstanding the continued difficultly of contacting many borrowers, early results are positive." Freddie is offering to reduce the interest rate on their mortgage by two percentage points and extend the term to 40 years. The mortgage giant launched the "mass modification" pilot program in April.
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