Fannie, Freddie Announce Holiday Foreclosure Moratorium
Posted at 11 a.m. on Dec. 4, 2012
The Chicago Tribune reports that “Fannie Mae and Freddie Mac said…they would provide a break for borrowers facing foreclosure to ensure those having problems making monthly mortgage payments will remain in their homes during the holidays.”
“Both Fannie Mae and Freddie Mac have already provided foreclosure-aid to borrowers with government-owned loans that are dealing with disaster-related damage in the wake of superstorm Sandy. The two companies have had moratoria to relieve burdens for borrowers around the holidays for the past couple of years.”
Adam Levitin thinks this shows all that is wrong with the government-sponsored mortgage giants.
“First, it moralizes the foreclosure issue. This isn’t a moral issue. It’s a macroeconomic policy issue and FHFA is being pennywise, but pound foolish in how it handles foreclosures… Finally, how on earth is a holiday moratorium justifiable under the conservatorship? If the FHFA is going to get worked up over variations in state foreclosure timelines and get high and mighty about protecting the taxpayer, then why isn’t it cracking the whip here, holidays be damned?”