Fannie warns homeowners who walk away

[jpinpb]

Those walkers may have to think twice:

Full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/04/13/RE34101D2M.DTL&tsp=1

“On March 31, Fannie Mae (FNM) sent out new guidelines to lenders intended for walkaways and other foreclosure situations. Fannie will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years, unless there are “documented extenuating circumstances.” In those cases, the mortgage prohibition is for three years.

Freddie Mac (FRE), Fannie’s rival, counts foreclosures as major credit blots for seven years, and a senior official said the company is now aggressively pursuing some walkaway borrowers “to preserve our deficiency rights” where permitted under state law.”

Although California is non-recourse.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[PadreBrian]

The joke is on them. As we have talked about before, all the dead-beats are doing is finding a new CHEAPER house getting loan out on it, and then stop making payments on the first. 3 years, walk in the park.

If they want to stop people they are going to have to close the loop-holes ASAP.

[jpinpb]

Fannie and Freddie are up against some real situations. That’s right. There was a thread regarding the realtor encouraging people to buy another place before they walk on the one they can’t afford. There’s so many schemes going on out there.

[jpinpb]

Fannie and Freddie are up against some real situations. That’s right. There was a thread regarding the realtor encouraging people to buy another place before they walk on the one they can’t afford. There’s so many schemes going on out there.

[jpinpb]

Fannie and Freddie are up against some real situations. That’s right. There was a thread regarding the realtor encouraging people to buy another place before they walk on the one they can’t afford. There’s so many schemes going on out there.

[jpinpb]

Fannie and Freddie are up against some real situations. That’s right. There was a thread regarding the realtor encouraging people to buy another place before they walk on the one they can’t afford. There’s so many schemes going on out there.

[jpinpb]

Fannie and Freddie are up against some real situations. That’s right. There was a thread regarding the realtor encouraging people to buy another place before they walk on the one they can’t afford. There’s so many schemes going on out there.

[patientrenter]

FNMA and Freddie don’t have nearly enough capital to cover their losses from the kind of downturn we all talk about here on Piggington. As the prior poster pointed out, it’s easy to get around the new rules, so everyone will. FNMA and Freddie aren’t dumb, so they know that.

I think there are folks at those organizations who think the market will start going back up again in 2009 or so, before they’re wiped out. These folks think the new rules won’t have to bite because all will be well once the market starts to go back up again. All will be forgiven. In the meanwhile, they get credit for appearing to be tough now.

Other folks at Fannie and Freddie see what we see, and know that the organization will be bailed out, but maybe not the stockholders. In their eyes, there’s no benefit in coming up with rules that actually bite, and actually save money, because the govt will end up having to cover all actual losses in excess of shareholder equity. So they just announce stuff to make themsleves sound prudent enough to deserve the bailout when it comes.

For heaven’s sake, these organizations are still lending 80% or more of home prices that are still multiples of the inflation-adjusted prices at the low point (1996) of the last cycle. They obviously aren’t trying to match their risk management practices to the risks we see.

Patient renter in OC

[patientrenter]

FNMA and Freddie don’t have nearly enough capital to cover their losses from the kind of downturn we all talk about here on Piggington. As the prior poster pointed out, it’s easy to get around the new rules, so everyone will. FNMA and Freddie aren’t dumb, so they know that.

I think there are folks at those organizations who think the market will start going back up again in 2009 or so, before they’re wiped out. These folks think the new rules won’t have to bite because all will be well once the market starts to go back up again. All will be forgiven. In the meanwhile, they get credit for appearing to be tough now.

Other folks at Fannie and Freddie see what we see, and know that the organization will be bailed out, but maybe not the stockholders. In their eyes, there’s no benefit in coming up with rules that actually bite, and actually save money, because the govt will end up having to cover all actual losses in excess of shareholder equity. So they just announce stuff to make themsleves sound prudent enough to deserve the bailout when it comes.

For heaven’s sake, these organizations are still lending 80% or more of home prices that are still multiples of the inflation-adjusted prices at the low point (1996) of the last cycle. They obviously aren’t trying to match their risk management practices to the risks we see.

Patient renter in OC

[patientrenter]

FNMA and Freddie don’t have nearly enough capital to cover their losses from the kind of downturn we all talk about here on Piggington. As the prior poster pointed out, it’s easy to get around the new rules, so everyone will. FNMA and Freddie aren’t dumb, so they know that.

I think there are folks at those organizations who think the market will start going back up again in 2009 or so, before they’re wiped out. These folks think the new rules won’t have to bite because all will be well once the market starts to go back up again. All will be forgiven. In the meanwhile, they get credit for appearing to be tough now.

Other folks at Fannie and Freddie see what we see, and know that the organization will be bailed out, but maybe not the stockholders. In their eyes, there’s no benefit in coming up with rules that actually bite, and actually save money, because the govt will end up having to cover all actual losses in excess of shareholder equity. So they just announce stuff to make themsleves sound prudent enough to deserve the bailout when it comes.

For heaven’s sake, these organizations are still lending 80% or more of home prices that are still multiples of the inflation-adjusted prices at the low point (1996) of the last cycle. They obviously aren’t trying to match their risk management practices to the risks we see.

Patient renter in OC

[Author]

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