Fannie Mae, Freddie Mac, FHA home retention lowers costs

New reports show that the strategies used by three major government-backed mortgage agencies to help delinquent borrowers keep their homes make financial sense for the entities themselves.

Fannie Mae, Freddie Mac and the Federal Housing Administration save billions of dollars over time by giving loans a chance to reperform, Housing Risk and Policy Advisors found in an analysis of data from sources that included Recursion.

The study the Housing Policy Council published could play a role in how policymakers view these entities’ investments in distressed servicing strategies as officials consider housing entities in budget talks and look at ways to make the public sector more efficient.

How the costs of disposition and retention compare

“Home retention alternatives are not free for mortgage…