This article in the Detroit Free Press, part 1 of a 3-part series, discusses how Fannie Mae claims that it tries to keep families in their homes, while at the same time pressuring banks to foreclose. Alan White, a law professor at Valparaiso University and a leading national expert on the foreclosure crisis, is quoted in the article:
“Fannie just wants to clean up its balance sheet and get these loans off the books while taxpayers are eating these losses,” White said, referring to the multibillion-dollar federal bailout of Fannie Mae in 2008 and the rising cost to taxpayers.
“And Treasury and the FHFA are letting them get away with it. It’s a huge waste. Wealth is being destroyed, people are losing houses needlessly, and taxpayers are losing money.”
The article also cites examples of banks requesting a delay in the foreclosure process in order to allow short sales or loan modifications to occur, and Fannie Mae declining those requests and insisting that the banks proceed with foreclosure.