Mortgage Biz News

A faction of House Democrats have called on Treasury Secretary Timothy Geithner and Fannie Mae's regulator to suspend the GSE's recently announced policy to sue homeowners who strategically default on their mortgage.

The group of lawmakers, led by Rep. John Conyers, Jr. of Michigan, called the policy "opaque, overbroad, and punitive." They decried Fannie for using taxpayer dollars to penalize underwater homeowners, and maintained that the policy runs counter to the national need to stem a devastating tide of foreclosures.