GSEs Join Foreclosure Moratorium

Fannie Mae and Freddie Mac have joined several major banks in declaring a foreclosure moratorium, a move designed to give the Obama administration a few weeks to roll out its homeowner retention plan. During the Christmas holiday season the two GSEs put a foreclosure moratorium in place but it expired at the end of January. Fannie Mae said it is suspending all foreclosures and evictions of owner-occupied properties through March 6 in anticipation of the administration's national foreclosure prevention and loan modification program. President Obama, Treasury secretary Timothy Geithner and Housing secretary Shaun Donovan will present their plan to address the foreclosure crisis at a Feb. 18 event in Mesa, Ariz. Chase, Wells Fargo, Bank of America and Citigroup have all suspended foreclosures. Citigroup said its moratorium will extend until President Obama has finalized the details of the loan modification program or March 12, whichever comes first.