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Loan Modification

: Loan Modification & Home Loan News

Fannie and Freddie to Eat Up All Bad Mortgages

By Moe Bedard

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Banks, mortgage bond investors and servicers are loath to go further, by forgiving principal, because it?s either a direct hit to capital or tricky to do under current bond documents. Enter Fannie and Freddie. With unlimited support from Treasury the two have theoretically unlimited capacity to eat losses, useful to Treasury if it wants to finance [...]

Full post as published by Loan Modification & Home Loan News on December 31, 2009 (boomark / email).

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