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New Fannie Mae Policy May Make CUs Mortgage Police

Mortgage servicers, including credit unions, have a new stick to wield with loan borrowers who might contemplate walking away from a mortgage commitment, according to new policy from Fannie Mae.

By David Morrison | Updated on June 24, 2010

Mortgage servicers, including credit unions, have a new stick to wield with loan borrowers who might contemplate walking away from a mortgage commitment, according to new policy from Fannie Mae.

Borrowers who walk away from their mortgage commitments in so-called “strategic defaults” will face a full seven year wait before they can be approved for a mortgage that can be sold to Fannie Mae, the mortgage giant said in its new policy. But if the borrowers work with the servicer towards coming up with an alternative to foreclosure, they maybe able to apply more quickly for a mortgage that could be sold on the secondary market that Fannie Mae still dominates.

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