Foreclosure Moratorium Extended 90 Days at Marshall & Ilsley
Marshall & Ilsley (MI), a Wisconsin-based mortgage banker, extended its voluntary foreclosure moratorium an additional 90 days through Dec. 31, 2009. The new expiration date marks a year since the moratorium first went into effect at the company. With $59.7bn in assets, M&I enacted its moratorium on all owner-occupied residential loans on Dec. 18, 2008 for customers who agree to work to reach a successful repayment solution. The moratorium is part of M&I’s Homeowner Assistance Program that proactively reaches distressed homeowners who are identified in advance. It also offers a foreclosure abatement program that features refinancing options such as term extensions and decreased rates that reduce monthly payments. M&I and other agencies put their moratoria in place at the end of 2008, but HousingWire sources explain that they are only temporary solutions. Once the moratoria expire, the foreclosure levels may pressure the recent signs of recovery in the market, said Martin Bernhard, of Credit Suisse’s private banking, investment services and products divisions. When HousingWire reported on Fannie Mae’s (FNM) efforts to provide funding to warehouse lenders because of brighter economic forecasts, Fannie’s president and CEO Michael Williams warned of the post-moratoria period. “As more properties come onto the market, that’s going to make it harder for home prices and the market overall to recover completely,” Williams said. Write to Jon Prior.