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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (82744)	8/5/2008 11:59:13 PM
From: Sr K	Read Replies (2) \| Respond to of 116555

I've just read the transcript of the Fannie Mae cc from May 6. On page 24 of 52 is something I've wondered about: Can Fannie Mae ("FNM") go after those lenders who violated FNM's standards? Here, Rob Levin answers yes (if that lender or servicer is still around and solvent). "Let me use Florida as an example, and I’ll be blunt about this. Florida is very over-built. It will take a long time to correct. Values continue to fall and delinquencies continue to increase, hitting 232 basis points in March, up from about 160 basis points in December, and up from 49 basis points a year ago. We are attacking this problem with three main strategies. First, we are making sure every delinquent borrower is contacted and offered a workout. Secondly, we are performing underwriting reviews on defaulted loans, and if the loans were not underwritten to our guidelines, we will require a servicer to buy them back or make us whole. And third, we are pursuing deficiency judgments against investors and second home borrowers."