In an apparent move by the Obama administration, government-controlled Fannie Mae and Freddie Mac announced plans to suspend foreclosure evictions during the holidays. The moves follow a similar action by Citigroup Inc. — which the government has a big stake in.
McLean, Va.-based Freddie announced today that it has ordered its attorneys to suspend all evictions on foreclosed residential properties that are occupied. Evictions scheduled between Dec. 19 and Jan. 3, 2010, are impacted.
“In these extraordinary times, we want to provide a greater measure of certainty to these families during the holidays,” Freddie Chief Executive Officer Ed Haldeman explained in the statement.
Washington, D.C.-based Fannie issued an almost identical statement.
The Obama administration appears to be using the two government-controlled companies to flex its muscle with mortgage servicers that it is prodding to pick up the pace of modifications.
Earlier, Citigroup subsidiaries CitiMortgage Inc. and CitiFinancial Inc. said they would suspend foreclosures for around 4,000 borrowers until Jan. 17, 2010.
The U.S. government holds a more than a one-third stake in New York-based Citigroup.
