Borrowers that are significantly delinquent in loans backed by Fannie Mae and Freddie Mac will be able to reduce their monthly mortgage payments without having to document their finances. The new policy announced by the Federal Housing Finance Agency and introduced by the companies’ regulator will hopefully reduce the companies’ losses. Borrowers who are more than 90 days behind on their mortgage may now make loan modifications without having to suffer tedious and time consuming administrative policies. This will give distressed homeowners another way in which to avoid foreclosure. The two Washington based companies, Fannie Mae and Freddie Mac, have been under U.S. Conservatorship since September of 2008. The two companies are estimated to back approximately two-thirds of U.S. home mortgages. The new program named the Streamlined Modification Initiative will take effect in July, 2013 and end August, 2015.