The policy shift, announced Sunday, affects about 4,000 renters living in Fannie Mae properties under foreclosure, The Washington Post reported Monday.
In November, Fannie Mae -- along with the Federal Home Loan Mortgage Corp, known as Freddie Mac -- said it would suspend both evictions and foreclosures through the holiday season. They also said they would introduce a program to modify mortgages of homeowners facing foreclosures, the Post said.
Fannie Mae said the moratorium on foreclosures would last until Jan. 9. Fannie Mae also said it would create a program to help tenants in foreclosed properties to either move or sign new leases.
"No renter should feel any apprehension of losing their home," said Curtis Lu, Fannie Mae's principal deputy general counsel.
The New Haven Legal Assistance had threatened legal action if Fannie Mae did not change its policy.
"We had seen bona fide renters who were current on their rent being forced to leave their homes," New Haven Legal Assistance attorney Amy Marx said in a statement. "We are delighted that Fannie Mae took our concerns seriously."
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