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Saturday, September 15, 2012

FHFA Looking to Jail Strategic Defaulters 4

http://mandelman.ml-implode.com/2012/09/fhfa-looking-to-jail-strategic-defaulters/

The Federal Housing Finance Administration (“FHFA”), which is the agency created to oversee Fannie Mae and Freddie Mac… the one run by perhaps the least popular man in America for his refusal to allow Freddie or Fannie to grant principal reductions… Ed “It’s a Matter of Principal” De Marco… is back in the news.

Nothing to do with principal reductions on GSE loans (those owned by Fannie or Freddie), this time it’s even more offensive, if you can imagine that.

A reader brought the story to my attention (Hat tip to Deontos) and if it hadn’t appeared in the Chicago Tribune, I’m not sure I would have believed it.

Apparently, the Feds have announced that they are coming after “strategic defaulters,” who they define as people who’ve decided to walk away from mortgages even though they could afford to continue paying their payments.

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