WASHINGTON, Dec. 10 (Xinhua) -- Two major mortgage corporations in the United States announced suspension of eviction lockouts on Monday, allowing struggling borrowers to stay in their homes during the holidays.
The Federal National Mortgage Association, better known as Fannie Mae, said that it would suspend eviction lockouts of foreclosed single-family properties between Dec. 17, 2018 and Jan. 2, 2019.
Although families would be allowed to remain in the home during the holidays, legal and administrative process for evictions may continue, said Fannie Mae.
Meanwhile, the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, also announced a suspension of eviction lockouts during the same period of time. However, Freddie Mac said this would not affect other pre-foreclosure or post-foreclosure activities.
Foreclosure is a legal process that a lender enforces the sale of the asset in order to recover the balance of a loan from a borrower who has stopped making payments for a period of time. Eviction and lockout could happen to borrowers during this process.
"We believe it is important to extend the timeline of help for struggling borrowers during the holidays," said Jacob Williamson, vice president of single-family real estate at Fannie Mae.
"As we have done in past years, we are suspending evictions from Freddie Mac-owned homes to help provide families with a greater measure of certainty during the upcoming holiday season," said Yvette Gilmore, vice president of single-family servicer performance management at Freddie Mac.
Fannie Mae and Freddie Mac were both major lenders in United States, established to promote stability and affordability in the U.S. housing market. Fannie Mae ranked 21st on the Fortune 500 rankings of the largest United States corporations by total revenue, while Freddie Mac ranked 38th.