The Real Deal Miami

Fannie to crack down on defaulters

June 24, 2010 04:45PM

Fannie Mae said yesterday it would penalize borrowers who defaulted on
mortgages they could have afforded by locking them out of getting a new
loan for seven years, the Wall Street Journal reported. It’s the latest
step being taken by the mortgage industry to prevent a new wave of
losses resulting from an increasing number of underwater borrowers
opting for strategic default. Fannie said it plans to increase its legal
actions in states that allow lenders to go after borrowers’ other
assets and that it would instruct its
lender partners to monitor delinquent loans and recommend cases that warrant attention.