Mortgage giant Fannie Mae has launched a new program that will allow struggling homeowners to stay in their homes.
The new Deed for Lease program will allow people losing their homes to foreclosure to lease those properties back for up to a year at market rates.
Fannie Mae executives said the rental program is designed to help delinquent homeowners who don't qualify for a loan modification, but still want to stay in their homes.
The program also helps save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process.
The program helps "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.
Critics question whether the change will only add to the losses at Fannie Mae, which has received billions in taxpayer money.