Fannie Mae has unrolled a new
interactive website designed to educate and assist homeowners who are
struggling with their mortgage payments.
The site, KnowYourOptions.com, outlines the choices
available to homeowners and provides guidance on how they can contact and work
with a mortgage company to find solutions.
Persons working in the area
of foreclosure prevention often find it difficult to even get in touch with
delinquent borrowers. At a conference on
foreclosure policy sponsored by the Federal Reserve Bank of Chicago late last year,
Sendhil Mullainathan of Harvard University said that counseling and
modification programs must be designed to reflect the knowledge that borrowers
tend to avoid contact with their lenders and servicers and recommended that policy
efforts focus on finding and getting services to these homeowners before the
banks can foreclose.
Whether the creators of the
Fannie Mae website attended the conference or not, their site show an intent to
be an unthreatening, even a warm and fuzzy place to obtain information and
assistance in an easy-to-understand format and, probably most important, anonymously.
Key features of the website,
which can be accessed in either English or Spanish, include:
- Interactive Options Finder to help homeowners
identify options that might be right for their situation;
- Calculators to help borrowers understand how
many of the options work, including refinance, repayment, forbearance, and
modification;
- Videos featuring real homeowners discussing
how they received help and housing counselors providing advice;
- A virtual assistant to walk homeowners through
key areas of the site; and
- Next steps and helpful forms, including a
financial checklist and contact log to help borrowers be prepared when
contacting their mortgage company or housing counselor.
A friendly virtual guide
walks visitors through the site, frequently reminding them that is is important
to contact their lender as soon as possible if they are having difficulties and
guiding them through decision points.
Are you behind in your mortgage? If
not, the visitor is directed to information on refinancing. If yes and the problem is short term the site
presents alternatives for repayment. If the homeowner feels his problem are
long term he is walked through options for staying in the house through a loan
modification or Fannie Mae's Deed-for-LeaseTM program or getting the problem
behind him with an explanation of the differences between foreclosure, short
sale, and deed-in-lieu.
The options are fully and
clearly explained and there are videos to drive home important points. For example, one video features three loan
counselors telling borrowers to evaluate their ability to perform under any proposed
repayment program. The site's interactivity is emphasized by several short visitor
surveys sprinkled through the pages. The site also has a glossary, a primer on
foreclosure fraud, and contact information for major lenders.
Jeff Hayward, Senior Vice
President, Fannie Mae's National Servicing Organization said, "There are
different answers for different situations and this site can be an important
tool in the toolbox for borrowers trying to do the right thing. This initiative
draws on the insights and feedback garnered through Fannie Mae's work with
thousands of lender partners and housing counselors across the country, and
will help connect borrowers with the servicing and counseling professionals
they need to reach resolution. Our hope is that this site can be a trusted
source of free information for borrowers and industry participants alike."
The company plans to
implement a comprehensive marketing outreach campaign to raise awareness about
the site, and also intends to use the site as a vehicle to roll out new options
for borrowers that are currently being developed.