Freddie Mac will allow mortgage servicers to apply federal taxpayer dollars to reduce principal or pay past due balances for struggling borrowers in all states that have designed such programs.
“Effective immediately, (servicers) should participate in state (housing finance agency) modification assistance programs that permit (servicers) to apply funds as a partial principal curtailment for homeowners with Freddie Mac-owned or guaranteed mortgages,” according to an alert sent to servicers late Monday.
via HousingWire | Freddie Mac clears mortgage principal reduction in more states.