Friday, August 08, 2008

Fannie Mae Push-Back

by Tanta on 8/08/2008 10:49:00 AM

Aside from the announcement today that Fannie Mae will end Alt-A lending by the end of the year, there was this little nugget in the press release:

[Fannie will be] ramping up defaulted loan reviews to pursue recoveries from lenders, focusing especially on our Alt-A book. The objective is to expand loan reviews where the company incurred a loss or could incur a loss due to fraud or improper lending practices. To achieve this, we are increasing post-foreclosure loan reviews from 900 a month in January to 4,000 a month by the end of the year, expanding our quality-control reviews for targeted products and practices, and are on track to double our anti-fraud investigations this year. We expect this effort to increase our credit loss recoveries in 2008 and 2009.
More great news for BOA.