Fannie Mae breaks rules to foreclose on unsuspecting homeowners

Fannie Mae has publicly proclaimed they will protect consumers while in the process of applying for HAMP or other federally funded loan modification programs.

Confidential records obtained by The Detroit Free Press reveal that Fannie Mae has gone against that promise by violating the government's own rules to protect homeowners in process of applying for federally funded loan modifications. Banks were directed to foreclose on mortgages over 12 months delinquent, despite loan modification status. Free Press notes that other confidential documents they have obtained show "that Fannie Mae made clear to banks that Fannie expected a certain percentage of delinquent borrowers to lose their homes."