Borrowers ith a Fannie Mae-backed mortgage who engage in a strategic defaul (defaults by borrowers who have the capacity to pay but don’t, or who don’t complete a workout alternative in good faith) won’t be eligible for another Fannie Mae-backed loan for seven years, according to the secondary mortgage market company. Fannie also will seek deficiency judgments against borrowers if allowed by state law. Fannie in late July was writing full-blown instructions to servicer detailing its new policies. Such defaults have been growing among underwater borrowers.
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