This is just a pure attempt to delay the revaluing of the paper FNM and FRE are holding on these loans. By giving up to 24 months until foreclosure they are just delaying some of the bloodbath in the debt markets. The sad thing is they are using the beginnings of a gov’t backstop (taxpayer money) to give out delay loans and delay a revaluing of assets that aren’t worth jack.

Tell me that a publicly traded for-profit entity wants people to not lose their homes and I have some AAA MBS to sell you!