Fannie Mae strives to deter strategic defaults

06/23/2010 | Bloomberg

Fannie Mae will temporarily deny new loans to mortgage borrowers who walk away from their homes without working with lenders to restructure their loans. "Walking away from a mortgage is bad for borrowers and bad for communities," said Terence Edwards, executive vice president for credit portfolio management at Fannie Mae. "Our approach is meant to deter the disturbing trend toward strategic defaulting." Edwards also said that the mortgage giant will take legal action against those who opt for a strategic default.

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