Thursday, June 24, 2010
Fannie Mae gets tough on homeowners who walk away...
Fannie Mae is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for 7 years. Troubled borrowers who do not try in good faith to work out a deal, but have the capacity to pay, are targeted by the policy. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, executive vice president for credit portfolio management.
