Fannie Mae and Freddie Mac Buying Sketchy Loans?
According to a report released by the Federal Housing Finance Agency (FHFA) last month, mortgage giants Fannie Mae and Freddie Mac have continued to buy questionable mortgages despite notice that there are issues with property appraisals.
Apparently at some point during the process of buying the loans, the FHFA evaluates them. Between the summer of 2012 and early fall of 2013, the FHFA alerted Fannie Mae and Freddie Mac to appraisal issues on $107 billion in mortgage loans. Despite that, Fannie Mae and Freddie Mac went ahead and bought those loans anyway.