Freddie Mac and Fannie Mae Will Force Lenders To Pay Back Losses Incurred During Home Foreclosure Process Delay

Fannie Mae and Freddie Mac will force lenders to pay for any losses that the GSEs incur due to a breakdown in the foreclosure process.
Interim FHFA director Ed DeMarco said the firms want to take a “tailored approach” to the foreclosure logjam that is fair to delinquent householders, servicers, and mortgage investors and is beneficial to taxpayers and the housing market.
The mortgage giants could lose billions of dollars in a prolonged delay because they would be unable to sell properties that have slipped into foreclosure, explains George Mason University real estate professor Anthony Sanders.

Source: Washington Post, Zachary Goldfarb, Dina ElBoghdady, and Ariana Cha (10/12/2010)

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