FANNIE MAE CRACKING DOWN ON STRATEGIC DEFAULTERS
Inman News reported that "Fannie Mae says it will get tough on borrowers who engage in "strategic defaults," or walk away from a home that's worth less than what's owed on the mortgage even if they can afford to keep making their payments."
"Fannie Mae said Wednesday that it will not only refuse to guarantee another loan for seven years if it has evidence that a borrower chose to default on their loan, and will seek to recoup losses in court through deficiency judgements in states that allow lenders such recourse."
"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, Fannie Mae's executive vice president for credit portfolio management, in a press release.
"Next month, Fannie Mae says it will instruct its servicers to begin monitoring delinquent loans facing foreclosure and issuing recommendations for cases that warrant the pursuit of deficiency judgments."
Maybe if FREDDIE MAC & FANNIE MAE were not part of the problem in the first place they would not have to be scrambling around for money and their stock would not have "junk bond" status! They create the problem - try to find a solution - the taxpayers pay a heavy price (the few get richer while most get poorer).
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