When the government announced in November that it would use mortgage giants Fannie Mae and Freddie Mac to streamline loan modifications for possibly hundreds of thousands of borrowers, officials billed the idea as a fast-track program to fight foreclosures. What no one mentioned is that homeowners would have to sign away their rights to sue, if they wanted to get those loans modified.
The waiver of legal rights is buried among a long list of requirements in loan modification agreements for delinquent borrowers seeking more affordable loans under the new loan program, which began on Dec. 15. Some experts say the waivers are problematic, because they could require a homeowner to give up all legal claims related to their mortgage, not just to the loan modification.
Monday, January 19, 2009
Freddie, Fannie Force Borrowers to Waive Legal Rights
Washington Independent reports:
