New at TWI: Fannie and Freddie Scrap Legal Waivers from Loan Modifications
Tuesday, February 10, 2009 at 5:46 pm
Last month, TWI’s Mary Kane reported that mortgage giants Fannie Mae and Freddie Mac were quietly slipping requirements into loan modification agreements that high-risk borrowers who are behind on their mortgage payments sign away their rights to sue, as a condition for changing the terms of their loans.
Talking Points Memo’s Elana Schor picked up on the story and asked Rep. Barney Frank (D-Mass.), the chair of the House Banking Committee, if he would move to stop mortgage lenders from requiring borrowers to waive their legal rights in exchange for help restructuring their mortgages.
“I did not know until you just told me that Fannie and Freddie were [requiring mortgage holders to sign waivers],” Frank said during the interview. “And I can pretty much guarantee you that we will have put an end to that within a few days.”
Mary now reports that Fannie and Freddie have removed the waivers from their loan modification agreements. You can read her full story here.
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