Fannie Mae Discourages Strategic Defaults
July 15, 2010
Source: Fannie Mae News Release
On June 23, 2010, Fannie Mae announced policy changes to discourage strategic defaults-defaults by borrowers who have the capacity to pay or who do not complete a workout alternative in good faith. Borrowers who engage in strategic defaults will be ineligible for another Fannie Mae-backed loan for seven years from the date of the foreclosure. In addition, Fannie will also seek deficiency judgments, if allowed by state law. In July, Fannie plans to issue instructions to servicers detailing the new policies.
