New at TWI: Fannie, Freddie Force Borrowers to Waive Rights
TWI economy reporter Mary Kane breaks some startling news today. In November, mortgage giants Fannie Mae and Freddie Mac quietly slipped a requirement into mortgage modification paperwork that forces homeowners to waive their legal rights in order to be eligible to renegotiate their loans. The broad requirement bars borrowers from bringing suits related to their mortgages — even when the issue is unrelated to the modification they are seeking.
At a hearing this summer, House Financial Services Committee Chairman Barney Frank attacked private industry for putting such requirements in place. Housing advocates say they will bring this issue to Frank’s attention.
Great work, Mary!