rssNew at TWI: Fannie and Freddie Scrap Legal Waivers from Loan Modifications
Tuesday, February 10, 2009 at 5:46 pm
- 6 Comments
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.
6 Comments
Comment posted February 10, 2009 @ 5:18 pm
I don't care what anyone says, I like Barney Frank.
Comment posted February 11, 2009 @ 6:47 am
Me too, he's the only one trying to make sense out of a political game to destroy the GSE's
Pingback posted February 11, 2009 @ 8:27 am
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Comment posted February 16, 2009 @ 2:20 pm
What if you're not late and never been late but are still struggling due to the slowdown in the economy? I've been in my home for almost 30 years, have refinanced via stated income and have never missed a beat. In 2005 I leveraged equity to build some rental properties for my retirement and went from $150,000 mortgage balance to $950,000 and my property value went from 1.5 mil to 750k.
Now I'm underwater, my construction service business is off by 50% but still generating enough revenue to make my payments and eek by. I've heard that the banks will only help people (about 6% of all borrowers) who are 60 to 90 days late. Somehow I don't feel it's fair that folks who are struggling to be honest debtors and make their payments should be discriminated against for the ones who can't.
Where am I going wrong here? Should I start missing payments and compromise my 750 credit score? I can't get a refi because of my LTV and D/I ratio and because I own a small business and have only ever done stated income loans and I didn’t lie. Yet I’m classified as a liar’s loan.
It's all the predatory lending practices that got us into this mess in the first place. I think our leadership should step up and assume the position since it was Barney Frank and his boys in Congress, George Bush, good ole Fed Chief Alan Greenspan and all the other members of the good ole boys club that gave the green light to the lending industry including Fanny and Freddie that got us into the mess in the first place.
Don't you think it's unfair that only 6 out of every 100 homeowners will get the benefit of a LM and millions who are struggling yet performing will be swept under the rug unless they fall into the same category and don't you think this may start an avalanche of borrowers who just say “_____-it!” “If that's what it takes to get my interest rate, principle and monthly payment dropped….why not?”
Comment posted May 13, 2009 @ 12:31 am
What Mary Kayne reported is correct and the points against barney is exact..
option mortgage
Comment posted May 13, 2009 @ 7:31 am
What Mary Kayne reported is correct and the points against barney is exact..
option mortgage
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