Fannie, Freddie
Regulator Puts New Rules on Delinquent Loan Sales
New rules issued by the Federal Housing Finance Agency on March 2 indicate that investors taking over delinquent mortgages backed by Fannie Mae and Freddie Mac must do more to reach agreements that enable borrowers to keep their homes. Investors must consider extending loan terms, forbearing or forgiving mortgage principal, or pursing a short sale before foreclosure. When investors foreclose, the new rules require them to consider selling properties only to nonprofit groups or people who plan to live in the homes -- not other investors -- during the first 20 days after a property is marketed. While the rules could limit foreclosures, investors insist they will reduce prices for the loans and generate steeper taxpayer losses by making them go through extra steps.
From "Fannie, Freddie Regulator Puts New Rules on Delinquent Loan Sales"
Wall Street Journal (03/03/15) P. A2 Light, Joe
New rules issued by the Federal Housing Finance Agency on March 2 indicate that investors taking over delinquent mortgages backed by Fannie Mae and Freddie Mac must do more to reach agreements that enable borrowers to keep their homes. Investors must consider extending loan terms, forbearing or forgiving mortgage principal, or pursing a short sale before foreclosure. When investors foreclose, the new rules require them to consider selling properties only to nonprofit groups or people who plan to live in the homes -- not other investors -- during the first 20 days after a property is marketed. While the rules could limit foreclosures, investors insist they will reduce prices for the loans and generate steeper taxpayer losses by making them go through extra steps.
From "Fannie, Freddie Regulator Puts New Rules on Delinquent Loan Sales"
Wall Street Journal (03/03/15) P. A2 Light, Joe
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