Fannie Mae and the Boston-based nonprofit Neighborhood Assistance Corp. of America (NACA) have agreed to work together to modify loans, NACA's CEO, Bruce Marks, told the Wall Street Journal.
The agreement has not yet been formally announced. The Wall Street Journal also reports that Marks and the NACA are negotiating a similar deal with Freddie Mac. The government-sponsored enterprises must consult with their conservator, the Federal Housing Finance Agency, before it the modification initiatives with the NACA become operational.
The NACA already has similar agreements in place with Bank of America and Wells Fargo, among other lenders. The nonprofit's approach to loan modifications does not exclude the possibility of principal reductions.
SOURCE: Wall Street Journal